Ventive Hospitality, backed by Blackstone and Panchshil Realty, has decided to launch its Rs 1,600-crore initial share sale for subscription on December 20. It filed a red herring prospectus with the Registrar of Companies on December 14.
The IPO consists of an entirely new issue with no offer-for-sale component. The public issue includes a reservation of shares worth Rs 1 crore for the company’s employees.
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Real estate developer Panchshil Realty and investment firm Blackstone as promoters own 80.90 percent in the company.
The Pune-based hospitality asset owner will utilise Rs 1,400 crore out of net IPO proceeds for repaying debt, and the remainder for general purposes. The total debt on its books as of September 2024 was Rs 3,609.5 crore.
With 11 operational hospitality assets in India and Maldives, totalling 2,036 keys across the luxury, upper upscale and upscale segments, Ventive Hospitality competes with several listed peers like Chalet Hotels, Samhi Hotels, Juniper Hotels, Indian Hotels Company, EIH, Lemon Tree Hotels, and Apeejay Surrendra Park Hotels.
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The anchor book of the IPO will be launched on December 19, while the issue will close for public subscription on December 24. Up to 75 percent of the offer size is reserved for qualified institutional buyers, 10 percent for retail investors, and the remaining 15 percent for non-institutional investors.
On the financials front, Ventive Hospitality has posted a net loss of Rs 66.7 crore for the fiscal 2024, against a profit of Rs 15.7 crore in the previous year. Revenue during the financial year ended March 2024 stood at Rs 1,842 crore, up 8.4 percent compared to Rs 1,699.4 crore in FY23.
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Even in the first half of the current fiscal 2025, it recorded a loss of Rs 137.8 crore on revenue of Rs 846.4 crore.
The merchant bankers handling the public issue are JM Financial, Axis Capital, HSBC Securities and Capital Markets (India), ICICI Securities, IIFL Capital Services, Kotak Mahindra Capital Company, and SBI Capital Markets.
