Ventive Hospitality IPO Launch: Key Details
Ventive Hospitality Private Limited, a joint venture between real estate developer Panchshil Realty and Blackstone, has recently announced its Initial Public Offering (IPO). The company submitted its draft IPO papers to the Securities and Exchange Board of India (SEBI) on September 10, intending to raise a substantial Rs 2000 crore through this public issue. Moneycontrol first reported on September 9 that Ventive was preparing to file its IPO papers, making this milestone a much-anticipated event in the investment community.
IPO Structure and Fund Utilization
Through this IPO, Ventive will issue only fresh equity shares worth Rs 2000 crore; there will not be any shares sold through an offer-for-sale mechanism. The funds raised will primarily be allocated for:
- Repayment or pre-payment of certain loans incurred by the company and its subsidiaries
- General corporate purposes aimed at boosting the company’s financial stability and growth
Business Overview of Ventive Hospitality
As of March 31, 2024, Ventive Hospitality boasts a robust portfolio of 11 operational hospitality assets situated in India and the Maldives. The company offers a total of 2036 rooms, catering to luxury, upper upscale, and upscale market segments. Notably, its assets are managed by renowned global brands such as Marriott, Hilton, Minor, and Atmosphere. Some of the premier luxury properties in their portfolio include:
| Hotel | Location |
|---|---|
| JW Marriott | Pune, India |
| The Ritz-Carlton | Pune, India |
| Conrad | Maldives |
| Anantara | Maldives |
| Raya by Atmosphere | Maldives |
It is noteworthy that these luxury assets contribute over 80% of the company’s revenue, highlighting the significant role of high-end hospitality in Ventive’s financial success.
Upcoming Projects to Watch
Ventive Hospitality has exciting projects lined up, which include:
- A 167-key Marriott hotel in Varanasi
- An 80-key luxury resort, The Ritz-Carlton Reserve in Sri Lanka
- A 120-key Marriott Aloft in Whitefield, Bengaluru
These upcoming developments emphasize Ventive’s vision to expand its luxury and upscale offerings in key markets.
Company Structure and Stakeholders
Originally established as the hospitality division of Panchshil Group, Ventive has evolved significantly since Blackstone joined as a joint venture partner in 2017. At present, Panchshil Realty holds a 60% stake in Ventive, while Blackstone retains the remaining 40% stake. Besides its hospitality assets, Ventive also includes four Grade A annuity assets as part of its hospitality-led integrated development in Pune, which encompasses a total leasable area of 3.40 million square feet with an impressive occupancy rate of 97%.
Conclusion
With its strong portfolio and ambitious growth plans, Ventive Hospitality is set to make a significant impact in the hospitality sector. Investors and stakeholders will be closely monitoring the launching of its IPO, particularly in light of the company’s focus on enhancing its core hospitality business while strategically managing its financial commitments.
