Ventive Hospitality IPO: Price band set at ₹610-643 per share; check key dates, issue details, more

Ventive Hospitality IPO price band: The Ventive Hospitality Limited IPO price band has been fixed in the range of ₹610 to ₹643 per equity share of the face value of Re 1. The Ventive Hospitality IPO date of subscription is scheduled for Friday, December 20, and will close on Tuesday, December 24. The allocation to anchor investors for the Ventive Hospitality IPO is scheduled to take place on Thursday, December 19.

The floor price and the cap price are 610 times and 643 times the face value of the equity shares, respectively. The price to earnings ratio for fiscal 2024 for the company at the upper end of the price band is 40.39 times and at the lower end of the price band is 38.32 times. The Ventive Hospitality IPO lot size is 23 equity shares and in multiples of 23 equity shares thereafter.

Ventive Hospitality IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. The employee portion has been reserved equity shares up to ₹10 million.

Tentatively, Ventive Hospitality IPO basis of allotment of shares will be finalised on Thursday, December 26, and the company will initiate refunds on Friday, December 27, while the shares will be credited to the demat account of allottees on the same day following refund. Ventive Hospitality share price is likely to be listed on BSE and NSE on Monday, December 30.

The company specializes in owning hospitality assets, with a main emphasis on luxury offerings catering to both business and leisure markets. All of their hospitality properties are managed by or franchised under leading global brands such as Marriott, Hilton, Minor, and Atmosphere. For the six months ending September 30, 2024, and for FY24, FY23, and FY22, the pro forma revenue from hotel operations accounted for 68.47%, 72.04%, 72.71%, and 68.53% of their total pro forma income, respectively.

The firm's revenue derived from hotel operations represented 56.24%, 49.26%, 51.11%, and 38.37% of their overall income for the six months ended September 30, 2024, and for FY24, FY23, and FY22, respectively.

As per the red herring prospectus (RHP), the company's listed peers are Chalet Hotels (with a P/E of 66.04), Samhi Hotels, Juniper Hotels (with a P/E of 244.86), The Indian Hotels Company (with a P/E of 87.89), EIH (with a P/E of 36.68), Lemon Tree Hotels (with a P/E of 69.10), and Apeejay Surrendra Park Hotels (with a P/E of 42.96).

Ventive Hospitality IPO details

The IPO consists entirely of a new issue worth ₹1,600 crore. The company aims to use the net proceeds from this new issue for several purposes, including the repayment or prepayment, either partially or fully, of specific borrowings taken by the company; covering the accrued interest on those borrowings; and for its step-down subsidiaries, SS & L Beach Private Limited and Maldives Property Holdings Private Limited, which includes the payment of interest through investments in these step-down subsidiaries; as well as for general corporate purposes.

The book running lead managers for the Ventive Hospitality IPO include Jm Financial Limited, Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, ICICI Securities Limited, IIFL Securities Ltd, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited, while Kfin Technologies Limited serves as the registrar for the offering.

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