Ventive Hospitality’s strong stock market debut: Shares close with 9.5% gain over IPO price

Ventive Hospitality had a successful debut on the stock market today, with its shares listing at ₹718.15 on the Bombay Stock Exchange (BSE), marking a 12% premium over the IPO price of ₹643. On the National Stock Exchange (NSE), shares opened at ₹716, reflecting a premium of 11.35%.

The company’s IPO, which ran from December 20 to 24, was met with strong investor interest, subscribing 9.82 times overall. Retail investors contributed 5.94 times, Non-Institutional Investors (NII) oversubscribed by 13.87 times, and Qualified Institutional Buyers (QIB) saw 9.08 times subscription.

Though the stock initially saw a dip, it ended the session down by 1.89%, closing at ₹704.55 on the BSE. Nevertheless, the stock finished the day with a 9.57% gain over the upper price band of ₹643.

At the time of listing, Ventive Hospitality’s market capitalization stood at ₹16,721 crore, with shares trading at ₹725 on the BSE, reflecting a 12.75% premium over the issue price. Investors who bought the IPO at the lot size of 23 shares saw their investments grow by ₹1,728.45, from ₹14,789 to ₹16,517.45.

The company, which owns a portfolio of luxury hotels across India and the Maldives, intends to use the IPO funds to reduce borrowings, pay off interest, and invest in its subsidiaries.

Analysts are optimistic about Ventive’s medium to long-term growth, supported by global brand partnerships and steady revenue from its annuity assets. However, concerns remain regarding its reliance on third-party operators for most of its hotel rooms.

Ventive’s financial performance has been strong, with a 44% compound annual growth rate (CAGR) in revenue, and it plans to expand further, including new projects in India and Sri Lanka. The company is aiming to increase its hospitality assets to 2,403 keys by FY28.