Ventive Hospitality IPO: Analysis And Subscriptions
With the new extension, Ventive Hospitality Limited has also opened up its IPO earlier and is now targeting investors with various investment potentials. The company’s IPO began on 20th March, 2024 up until the 23rd of March and at the time Ventive was providing the information about IPO including the grey market premium and subscription rates.
Some more information about the Investors and the IPO
- Price Band: ₹610 to ₹643 per equity share
Size of Lot: 23 shares.
Size of offer: The IPO is through a fresh issue and an offer for sale by existing shareholders. The proceeds of the new issue will go towards repayment of debt, payment of interest, and for meeting working capital requirements.
Important Dates: The start date of the IPO was March 20, 2024 and the close date was 24th March. The share allocation has been confirmed on 26th of March, 2024 and henceforth the shares were list on the market on 30th March, 2024
Status of IPO subscriptions
At around December 23, 2023, the subscription for Ventive Hospitality’s IPO was at 78%. It is guided through the discretion of the institutional buyers which hare termed as Qualified Institutional Buyiers in short form QIB’s. Actually, this is a positive scenario for the company which assists the IPO demand. The level of moderation of retail and non institutional investors indicates the level of apprehension of the investors.
A raise of the rates of IPO subscription will occur as retail investors start pouring in during the final closing dates. But potential investors will need to see the end figures about this IPO if it has been able to reach the full subscription targets.
GMP Grey Market Premium
Despite the name, it is important to the market regarding the expectations of the IPO listing. The latest data shows that Ventive Hospitality’s GMP is ₹29 which depicts a gain of 4.5% when the shares are listed.
However, investor confidence isn’t so high considering the modest premium which can be caused by certain specific market conditions. This is good, but the low GMP indicates that buyers are wary especially in light of the conditions of the market place or some sector.
Financial Highlights
On a financial note, Ventive Hospitality has improved in recent times. Company fiscal year 2024 results:
- Revenue from Operations: ₹478 crores, an increase of 11% year on year.
- PAT: ₹166 Crores, an increase of 27% over last fiscal year.
These strong financial results, the company has proven its capacity for growth in a competitive market in hospitality. Such a performance indicates that Ventive Hospitality is in the right strategic directions for further growth these are important as the hospitality sector is recovering globally which is important for investor confidence.
Analyst Opinion
Analyzing the overall sentiment surrounding the Ventive Hospitality IPO, analysts are largely hopeful with a special inclination toward long-term investors. The company’s historical operating revenue growth, profitability and operational market for a luxury hospitality is a position that will compliment the company’s future outlook.
According to industry reports, the Ventive Hospitality is in one of the sectors that are witnessing a revival bounce back from the calamitous state it was left on post global tourism. Increased traveller demand engendered by inadequate new supply in critical markets is bound to work well for the company ana analysts suggest the IPO as a long term investment; however, the company may face some volatility around the listing date owing to the undercurrents of sentiment at the primary market and some other macroeconomic effects.
Risks and Considerations
Although the overall picture is rather encounter balanced, especially for long-term hospitality investor, investors still have some risks to evaluate. Some international or domestic known, Global recessions, encroachment of inflation coupled with soaring interest rates and unstable geo-political situations may hurt several hospitality ventures of the company Ventive Hospitality grew financially, but the company faces stiff competition from established companies who may chip away their share and profit in the industry.
Conclusion
For investors of luxury hospitality, the company Ventive Hospitality looks good for IPO. The overall assets of the company such as finances, forget about revenue growing predictably, their profitability alone should be able to lift the outlook for the long-term investors. The quiet grey market premium combined with relatively sloppy subscription trend is a signal that ideal market conditions should be considered.
The firm would certainly appeal in the US IPO. Analysts however view the company favorably. Market sentiment towards this IPO will be reflected by the final subscription rates and listing performance of the share. Make sure to follow the final days of the IPO process and decide whether this opportunity goes along with your investment strategy.
If you are interested for more:“Ventive Hospitality IPO: A Strong Investment Opportunity in, and “Senores Pharmaceuticals IPO: Unlocking Growth and Potential
