Ventive Hospitality specializes in mixed-use developments that seamlessly integrate luxury hospitality and efficient workspaces. The company aims to create vibrant, exclusive communities with incomparable amenities and high-end finishes, where office spaces complement hospitality. With a strategic vision and impeccable design, Ventive Hospitality’s projects offer unparalleled leisure, recreation, and productive work environments.

The Ventive Hospitality IPO is a book-built issue of ₹1,600 crores, consisting entirely of a fresh issue of 248.83 lakh shares. The price band for the issue is set between ₹610 and ₹643 per equity share, and at the upper price band, the company will have a market capitalization of ₹15,016.74 crores. The lot size for the IPO is 23 shares, with retail investors required to invest a minimum of ₹14,789. For High-Net-Worth Individuals (HNIs), the minimum investment is 14 lots (322 shares), amounting to ₹2,07,046.

The subscription period for the Ventive Hospitality IPO opens on December 20, 2024, and closes on December 24, 2024. The allotment date is expected to be December 26, 2024, with shares being listed on the BSE and NSE around December 30, 2024.

The book-running lead managers for the issue include JM Financial Limited, Axis Capital Limited, HSBC Securities and Capital Markets, ICICI Securities Limited, IIFL Capital Services Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited, while KFin Technologies Limited serves as the registrar.

As of December 21, 2024, the Grey Market Premium (GMP) for the IPO stands at ₹0, suggesting that there is no indication of listing gains. This could indicate a lack of demand in the grey market, which is typically a non-official indicator and should be interpreted with caution.

Ventive Hospitality’s financial performance has been inconsistent. For the fiscal year ending 2024, the company recorded revenues of ₹19,073.78 million, with an EBITDA of ₹7,994.47 million. However, the company posted a loss of ₹667.46 million in Profit After Tax (PAT) for FY24, following a loss of ₹1,461.97 million in FY22. This is in contrast to the previous year’s PAT of ₹156.75 million.

The pre-issue EPS stands at -₹5.24, while the post-issue EPS is expected to be -₹2.86. With a pre-issue P/E ratio of -122.71x and post-issue P/E ratio of -224.98x, the company is in negative territory, indicating no profitability. The industry’s average P/E ratio is 78x, suggesting that the IPO is overpriced.

Given the negative earnings, low ROCE of 0.31%, and ROE of 0.66%, the IPO is fully priced despite strong growth in revenues and EBITDA. The annualized EPS based on the latest financial data is -₹15.94, which reflects a negative PE ratio of -40.33x.

Despite the growth potential in luxury hospitality and mixed-use development, Ventive Hospitality's financials and valuation metrics suggest that the IPO may not deliver immediate listing gains. Given the negative P/E ratio, low profitability, and the absence of Grey Market Premium, we recommend that investors avoid the Ventive Hospitality IPO for listing gains.

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The Current active IPO is Anya Polytech and Unimech Aerospace.

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