Ventive Hospitality Limited, the hospitality division of the Panschil Group, which is supported by Blackstone, has received regulatory approval from the Securities and Exchange Board of India (SEBI)for an initial public offering (IPO) valued at ₹2,000 crore.
This IPO will feature a fresh issuance of equity shares, each with a face value of Rs 1, aggregating to the total offering of Rs 2,000 crore. Ventive specializes in the acquisition and management of high-end hospitality assets, targeting both corporate and leisure markets, as per DRHP
Established as the hospitality division of Panchshil Realty—a real estate firm based in Pune—Ventive Realty formerly known as ICC Realty (India) Private Limited, transitioned following a strategic acquisition in 2017, when BRE Asia (formerly Xander Investment Holding XVI Limited), an affiliate of Blackstone, acquired a 50% equity stake. This positioned BRE Asia as a co-majority stakeholder alongside Panchshil Realty, the document mentioned.
Focusing on luxury hospitality, Ventive’s portfolio comprises assets operated by or franchised from global hotel brands including Marriott, Hilton, Minor, and Atmosphere. Notable properties in their lineup include JW Marriott Pune, The Ritz-Carlton Pune, Conrad Maldives, Anantara Maldives, and Raaya by Atmosphere Maldives.
As of March 31, 2024, the company operates 11 hospitality assets in India and the Maldives, totaling 2,036 keys across luxury, upper upscale, and upscale segments. This represents a substantial increase from the 83 keys available at the onset of operations in 2007, DRHP said.
Ventive’s growth trajectory has been supported by a combination of developmental initiatives and strategic acquisitions, enabling entry into new markets such as Bengaluru, Varanasi, and the Maldives over recent years.
In addition to its luxury foothold, the company has expanded its portfolio with upper upscale and upscale properties, enhancing its offerings in key business hubs like Pune and Bengaluru.
As per the DRHP, luxury assets contributed over 80% of pro forma revenue from hotel operations across FY24, FY23, and FY22. During this timeframe, both the pro forma revenue and pro forma EBITDA among listed hospitality asset owners in India reached peak levels, positioning Ventive as the third highest for revenue in FY24 and FY23 and second in FY22 among peers.
Pro forma EBITDA followed a similar trend, ranking third in FY24 and second in FY23 and FY22, underscoring the robust performance of Ventive’s assets within the competitive landscape.
Considering India’s rapid economic growth and the Maldives’ standing as a premier tourist destination, Ventive aims to leverage its expertise in luxury and upscale hospitality asset development, targeting an increase of approximately 367 keys—or 18.02%—from 2,036 keys as of March 31, 2024, to an estimated 2,403 keys in the future.
This growth will be driven by planned developments and expansions in Varanasi, Uttar Pradesh, and Bengaluru, Karnataka, along with new projects in Pottuvil, near Yala East National Park, and Arugam Bay Beach in Sri Lanka.
The Book Running Lead Managers for this issue include JM Financial Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, IIFL Securities Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited.
