Ventive Hospitality shares hold modest listing gains, end mildly down after opening at 11% premium over IPO price

Ventive Hospitality listing is mostly in-line with the Street expectations after the IPO was subscribed 9.80 times overall.

Ventive Hospitality shares made their stock market debut today, listing at Rs 716 on the NSE, with a modest premium of 11 percent over the IPO price of Rs 643 per share. The listing was mostly in line with the Street expectations after the IPO was subscribed 9.80 times overall.

At the close of day 1 of its trading, Ventive Hospitality stock managed to hold most of the listing gains, ending at Rs 706 -- down 1.5 percent from its debut price.

Ventive Hospitality IPO highlights

Blackstone-backed Ventive Hospitality raised Rs 1,600 crore through its IPO, entirely as a fresh issue with no offer-for-sale component. The IPO, which closed on December 24, had a price band of Rs 610-643 per share. It received 9.08 times subscription in the Qualified Institutional Buyers (QIBs) category, 13.85 times in the Non-Institutional Investors (NIIs) category, and 5.85 times in the Retail Individual Investors (RIIs) segment.

Company overview and financial performance

Ventive Hospitality is a joint venture between US-based Blackstone Group and Panchshil Realty, operating as a hospitality asset owner focusing on luxury offerings across India and the Maldives. The company’s partnerships with renowned brands like JW Marriott, Hilton, and The Ritz-Carlton, as well as marquee tenants such as HSBC, Deutsche Bank, and Starbucks, underline its strong market presence.

The company generated approximately 41 percent of its revenue from annuity assets in the first half of FY25, with significant contributions from leased properties. However, Ventive Hospitality reported a net loss of Rs 138 crore for the six months ending September 30, 2024, on a revenue of Rs 876 crore, primarily due to recent acquisitions. For FY24, the company posted a net loss of Rs 67 crore with a revenue of Rs 1,907 crore.

Key risks and outlook

Ventive Hospitality’s geographic concentration, with six of its 11 hospitality assets in Pune and three in the Maldives, poses risks to its business in the event of negative developments in these locations. Additionally, the hospitality sector’s cyclical nature makes it susceptible to macroeconomic factors.

The company plans to use Rs 1,400 crore of the IPO proceeds to repay debt, which is expected to reduce finance costs and improve profitability. Despite near-term challenges, its strategic partnerships, robust annuity revenue stream, and focus on debt reduction position it for long-term growth.

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