Blackstone-Backed Ventive Hospitality Debuts on the Stock Market

Ventive Hospitality Ltd, a joint venture between Blackstone and Indian developer Panchshil Realty, saw modest gains on its stock market debut.

The company’s shares listed on BSE Ltd at Rs 718 each, about a 12% increase from the IPO price of Rs 643. The stock reached a high of Rs 748 before settling at Rs 720 in late morning trading. Ventive Hospitality’s IPO, which offered 24.88 million fresh shares, was oversubscribed by nearly 10 times.

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Institutional investors placed bids 9.08 times the amount reserved for them, while non-institutional investors bid 13.87 times their share. Retail investors’ portion was oversubscribed by 5.94 times.

The reduced IPO size of Rs 1,600 crore consisted entirely of new shares.
Out of the total funds raised, the hospitality company plans to use Rs 1,400 crore to pay off or make advance payments on its debt.

Overview of Company and Financial Status

Ventive Hospitality is a joint venture between the US-based Blackstone Group and Panchshil Realty, focusing on luxury hospitality assets in India and the Maldives. The company has strong partnerships with brands like JW Marriott, Hilton, and The Ritz-Carlton, as well as tenants such as HSBC, Deutsche Bank, and Starbucks.

In the first half of FY25, about 41% of the company’s revenue came from annuity assets, mainly from leased properties. However, Ventive Hospitality reported a net loss of Rs 138 crore for the six months ending September 30, 2024, on a revenue of Rs 876 crore, largely due to recent acquisitions. For FY24, the company had a net loss of Rs 67 crore on a revenue of Rs 1,907 crore.

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