Ventive Hospitality Limited is preparing to launch its initial public offering (IPO) from December 20 to December 24, 2024, aiming to raise approximately ₹1,600 crores. The company specializes in the hospitality sector, operating a diverse portfolio of luxury hotels and resorts across India and the Maldives, catering to both business and leisure travelers. The IPO will consist entirely of a fresh issue of shares priced between ₹610 and ₹643 each, with a minimum investment requirement for retail investors set at ₹14,789 for one lot of 23 shares.
₹80
₹643
₹716
Expert Opinions
Market sentiment for the Ventive Hospitality IPO is notably positive, driven by a growing interest in the hospitality sector amid increasing domestic and international tourism. Company strengths include a robust portfolio of luxury properties, such as JW Marriott and The Ritz-Carlton, managed by globally recognized brands, which enhances its market credibility. However, risks and challenges involve potential fluctuations in travel demand and economic conditions that could impact occupancy rates.
The valuation analysis sets the price band between ₹610 and ₹643 per share for a total IPO size of ₹1,600 crores, which appears reasonable given the company’s growth potential in a recovering market. From a long-term investment perspective, Ventive Hospitality is well-positioned to capitalize on the expanding tourism landscape in India and the Maldives, making it an attractive option for investors seeking exposure to the hospitality industry while being mindful of inherent market risks.
Investor Considerations
Investors considering the Ventive Hospitality IPO should evaluate several critical aspects. Company performance and fundamentals are strong, with a portfolio of 11 luxury hotels and resorts managed by global brands like Marriott and Hilton, which enhances its market credibility. The sector outlook is favorable, as the Indian hospitality industry is poised for growth due to rising domestic and international tourism, creating demand for quality accommodations.
The IPO valuation, set between ₹610 and ₹643 per share for a total issue size of ₹1,600 crores, appears reasonable given the company’s strategic positioning and asset quality. Growth prospects are promising, particularly with plans to use proceeds to reduce debt significantly, improving financial stability. However, risk factors include high debt levels of ₹3,682 crores and reliance on third-party brand performance, which could impact profitability. A long-term investment horizon is advisable, as Ventive Hospitality is well-positioned to capitalize on the expanding luxury hospitality market in India.
| Date | GMP | Trend |
|---|---|---|
| 29 Dec 2024 12.04 | ₹80 | --- |
| 28 Dec 2024 11.36 | ₹80 | Up |
| 27 Dec 2024 11.12 | ₹70 | --- |
| 26 Dec 2024 11.16 | ₹70 | --- |
| 25 Dec 2024 11.28 | ₹70 | Up |
| 24 Dec 2024 11.11 | ₹50 | Up |
| 23 Dec 2024 11.58 | ₹30 | Up |
| 22 Dec 2024 12.03 | Down | |
| 21 Dec 2024 12.38 | ₹40 | --- |
FAQs
The Grey Market Premium showed strong accuracy in predicting Ventive Hospitality’s listing performance. The GMP of ₹80 predicted a premium of 12.44% over the issue price, while the stock delivered a similar gain of 11.35%. With a minimal prediction error of just 0.97%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a reliable indicator in this case.
Ventive Hospitality IPO Current GMP is ₹80.
Ventive Hospitality IPO Expected Returns is 12.44%.
Ventive Hospitality IPO estimated listing price is ₹723.