Ventive Hospitality IPO allotment date likely today. GMP, how to check allotment status

Team Finance Saathi

    27/Dec/2024

What's covered under the Article:

  1. Detailed review and subscription status of Ventive Hospitality IPO with expert opinions.
  2. IPO pricing, grey market premium, and market capitalization insights.
  3. Allotment process and key dates for Ventive Hospitality IPO investors.

The Ventive Hospitality IPO is one of the most anticipated public offerings in recent times, offering investors the opportunity to become a part of a luxury hospitality and workspace development company. With an issue size of ₹1,600.00 crores, consisting entirely of a fresh issue of 248.83 lakh shares, the IPO provides a chance to invest in a company with a unique business model blending luxury living with highly efficient workspaces. As the subscription period ends on December 24, 2024, investors are keen to understand the details of the IPO subscription, pricing, allotment process, and the Grey Market Premium (GMP).

IPO Pricing and Market Capitalization

The price band for the Ventive Hospitality IPO is set between ₹610 and ₹643 per equity share, with the market capitalization at an IPO price of ₹643 per share standing at ₹15,016.74 crores. This valuation is significant, indicating the scale of operations and the ambitious future of the company. The lot size is set at 23 shares, with the minimum retail investment at ₹14,789, and HNIs (High-Net-Worth Individuals) required to invest ₹2,07,046 for 14 lots. While the Grey Market Premium (GMP) for this IPO is expected to be ₹0, signaling cautious sentiment in the market, the IPO review points to a highly priced issue considering the negative earnings and pre-issue P/E ratio of -122.71x.

IPO Subscription Status and Key Dates

As of December 24, 2024, the Ventive Hospitality IPO was subscribed 9.82 times, reflecting significant investor interest, particularly in the retail category. The allotment date is scheduled for December 26, 2024, and investors can check their allotment status online by visiting the registrar's website. Shares will be listed on the BSE & NSE on December 30, 2024, with a tentative listing price in line with the issue price.

Financial Overview and Company Leadership

Ventive Hospitality has shown growth in revenues, with figures of ₹19,073.78 million in FY2024, up from ₹17,621.87 million in FY2023. However, the company's profitability has been a concern, as indicated by the negative PAT (Profit After Tax) of ₹667.46 million for FY2024. This performance impacts the pre-issue EPS of -5.24 and the post-issue EPS of -2.86, suggesting that Ventive Hospitality may not yet be a profitable investment in the short term. Despite these concerns, the company is led by experienced promoters such as Atul I. Chordia and other reputable stakeholders, which gives it a strategic advantage for future growth.

Expert Opinion on Ventive Hospitality IPO

Given the financial metrics, negative EPS, and high P/E ratio, experts recommend avoiding the Ventive Hospitality IPO for short-term listing gains. The company’s unique business model of combining luxury hospitality with workspaces makes it a long-term growth play, but the financial performance should be considered before making an investment. While the subscription status is promising, the GMP of ₹0 signals caution.

The Upcoming IPOs in this week and coming weeks are Indo FarmTechnichem OrganicsLeo Dry FruitsSolar91 Cleantech, Rosmerta Digital and Avanse Financial.

The Current active IPO is Citichem India and Anya Polytech.

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