Ventive Hospitality is a leader in mixed-use developments that seamlessly integrate luxury hospitality with functional workspaces. Their projects boast vibrant communities featuring unparalleled amenities and high-end finishes. These unique spaces are tailored for individuals seeking premium experiences where work and leisure harmoniously coexist.

To expand its operations and strengthen financial positioning, Ventive Hospitality launched an IPO worth ₹1600 Crores. The subscription window opened on December 20 2024 and will close on December 24 2024. Shares are priced within a band of ₹610 to ₹643, with a lot size of 23 shares. Retail investors can start with a minimum investment of ₹14789, while HNIs need to bid for at least 14 lots or ₹207046.

Subscription and Allotment Details

As of December 24 2024, the live subscription status shows the IPO subscribed 1.77 times on its final day. Shares will be allotted by December 26 2024, with a tentative listing date of December 30 2024. The company allocated ₹719.54 Crores to anchor investors at the upper price band of ₹643, which demonstrates institutional confidence but also sets expectations for its valuation.

Grey Market Premium and Listing Expectations

The Grey Market Premium (GMP) for Ventive Hospitality currently stands at ₹0, reflecting limited speculative interest. While GMP trends are not always indicative of listing outcomes, this could suggest muted listing gains for short-term investors.

Financial Performance

Ventive Hospitality reported steady revenue growth over the last three fiscal years:

• FY2024 revenue was ₹19073.78 Million
• FY2023 revenue was ₹17621.87 Million
• FY2022 revenue was ₹11976.09 Million

Despite this growth, the company’s profitability metrics remain concerning. Losses in FY2024 amounted to ₹667.46 Million, following a loss of ₹1461.97 Million in FY2022, with FY2023 showing marginal profits of ₹156.75 Million. The pre-issue EPS stands at ₹-5.24, while the post-issue EPS will drop to ₹-2.86. The company’s price-to-earnings ratio (P/E) is significantly lower than the industry average of 78x, suggesting limited valuation support for the IPO price.

Objectives of the IPO

Proceeds from the IPO will primarily be used to:

1. Repay or prepay certain borrowings, including those of step-down subsidiaries like SS & L Beach Private Limited and Maldives Property Holdings Private Limited.
2. Meet general corporate expenses.

These objectives highlight the company’s focus on improving its financial stability.

Investment Considerations

The Ventive Hospitality IPO offers a unique opportunity to invest in a company with strong anchor investor backing and premium luxury offerings. However, the negative financial metrics and absence of listing gains, as indicated by the GMP, suggest that this IPO may be better suited for long-term investors who believe in the company’s growth story.

The Upcoming IPOs in this week and coming weeks are Anya Polytech, Citichem India, Solar91 Cleantech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India.
For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX.