Blackstone-backed hospitality chain to launch ₹1,600cr IPO on December 20
Ventive Hospitality, a Blackstone and Panchshil Realty-backed company, will launch its ₹1,600 crore initial public offering (IPO) on December 20. The firm submitted a red herring prospectus to the Registrar of Companies yesterday. The IPO is a fresh issue with no offer-for-sale component and has reserved ₹1 crore worth of shares for employees. Currently, Panchshil Realty and Blackstone are promoters with an 80.90% stake in the company.
Ventive Hospitality's IPO proceeds to repay debt
Pune-based Ventive Hospitality plans to utilize ₹1,400 crore from the IPO proceeds to pay off its debt. The rest of the funds will be used for general corporate purposes. As of September 2024, the company's total debt was ₹3,609.5 crore. It manages 11 hospitality assets in India and Maldives with 2,036 keys across luxury and upscale segments.
IPO subscription and allocation details
The anchor book for Ventive Hospitality's IPO will open on December 19 and public subscription will close on December 24. The offer has reserved 75% for qualified institutional buyers, 10% for retail investors, and the remaining 15% for non-institutional investors. This allocation strategy is part of the company's broader plan to diversify its investor base following the public offering.
Financial performance and IPO management
In FY24, Ventive Hospitality posted a net loss of ₹66.7 crore against a profit of ₹15.7 crore in the previous year. The company's revenue stood at ₹1,842 crore in FY24, an 8.4% increase from FY23's ₹1,699.4 crore. In the first half of FY25, it posted a loss of ₹137.8 crore on revenue of ₹846.4 crore. JM Financial, Axis Capital among others are the merchant bankers managing the IPO.
