Upcoming IPO: Blackstone-Backed Ventive Hospitality Files RHP With SEBI, Likely To Raise Rs 1,600 Crore

The IPO season in India heats up as Ventive Hospitality, backed by global investment firm Blackstone and real estate major Panchshil Realty, prepares to launch its Rs 1,600-crore initial public offering (IPO) on December 20. The Pune-based hospitality asset owner filed its red herring prospectus with the Registrar of Companies on December 14.

IPO Details

Ventive Hospitality's public issue comprises a complete fresh issuance of shares, with no offer-for-sale (OFS) component. The IPO also includes a reservation of shares worth Rs 1 crore for the company's employees. The issue will close on December 24, following the launch of the anchor book on December 19.

The IPO is allocated across investor categories:
75% reserved for Qualified Institutional Buyers (QIBs)
15% reserved for Non-Institutional Investors (NIIs)
10% reserved for retail investors

Promoters & Fund Utilization

Promoters Blackstone and Panchshil Realty hold an 80.90% stake in Ventive Hospitality. Proceeds from the IPO are earmarked primarily for debt reduction, with Rs 1,400 crore allocated for repaying loans. As of September 2024, the company's total debt stood at Rs 3,609.5 crore. The remaining funds will be used for general corporate purposes, supporting operational and strategic initiatives.

Operational Footprint

Ventive Hospitality boasts a portfolio of 11 operational hospitality assets across India and the Maldives. With a total of 2,036 keys in the luxury, upper-upscale, and upscale segments, it competes with prominent listed peers such as Chalet Hotels, Samhi Hotels, Juniper Hotels, Indian Hotels Company, EIH, Lemon Tree Hotels, and Apeejay Surrendra Park Hotels.

Financial Performance

The financials of Ventive Hospitality reveal a mixed picture. In FY24, the company recorded a net loss of Rs 66.7 crore, a sharp reversal from a profit of Rs 15.7 crore in FY23. However, revenue grew by 8.4%, reaching Rs 1,842 crore in FY24 compared to Rs 1,699.4 crore in FY23. The first half of FY25 saw continued losses, with a net deficit of Rs 137.8 crore on revenue of Rs 846.4 crore.

Merchant Bankers

Leading financial institutions are managing Ventive Hospitality's IPO, including JM Financial, Axis Capital, HSBC Securities and Capital Markets (India), ICICI Securities, IIFL Capital Services, Kotak Mahindra Capital Company, and SBI Capital Markets. Post-allotment, the shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).