Tue Dec 24 06:59:15 UTC 2024: ## Ventive Hospitality IPO Moderately Subscribed, Poised for Next Week Listing

**MUMBAI, India –** Ventive Hospitality’s initial public offering (IPO) concluded today with a moderate response from investors. The IPO received a 1.28 times overall subscription, with retail individual investors (RIIs) showing stronger interest at 1.76 times subscription, while qualified institutional buyers (QIBs) and non-institutional investors (NIIs) subscribed at 1.22 and 1.07 times, respectively. The company had already raised Rs 719 crore from anchor investors last week.

Despite the decent subscription, brokerages have given a “Subscribe for long term” rating, citing concerns over the company’s significant losses – Rs 66.75 crore in FY24 and Rs 137 crore in Q2FY25, following a Rs 15 crore profit in FY23. This, coupled with its reliance on third-party operators and franchisees for service quality, presents a risk.

However, the positive end-of-year trend in the Indian stock market, and a grey market premium (GMP) of Rs 54 (an 8% premium), suggests a potentially strong debut. The company, which operates in the upscale/luxury hospitality segment, partners with global giants like Marriott and Hilton, offering a brand advantage but also exposing it to potential reputational risks. At the upper price band of Rs 643, the IPO values the company at a market capitalization of Rs 1,50,167 million, resulting in a high PE ratio of 90x based on FY24 earnings, according to Anand Rathi brokerage.

Ventive Hospitality is tentatively scheduled to list on December 30th.

Read More