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Background

Ventive Hospitality Ltd (VHL) is a hospitality asset owner with primary focus on luxury offerings across business and leisure segments All its assets are operated by or franchised from global operators, including Marriott, Hilton, Minor and Atmosphere. Company’s portfolio comprises 11 operational hospitality assets in India and Maldives, totaling 2,036 keys across the luxury, upper upscale and upscale segments. Further as of 1HFY25, the company’s platform also includes 4 stabilized Grade A annuity assets (3 Office assets & 1 Retail asset) having a total leasable area of 3.4 mn sq ft which are currently occupied by marquee tenants such as HSBC, Deutsche Bank, Nokia, Vodafone, PwC, Sephora, Starbucks and Vero Moda.

Details of the Issue:

The public issue consists of Fresh Issue aggregating upto Rs 1,600 Cr. .

Objects of the Issue:

1. Repayment/prepayment, in part or full, of borrowings 2. Payment of interest 3. General corporate purposes.

Investment Rationale:

1. Marquee Clientele with Premium hospitality assets 2. Delivering acquisition led growth with a proven record of asset management 3. Drive organic growth from ramp-up of existing assets

Valuation and Recommendation

VHL operates as a luxury hospitality player In association with renowned brands like JW Marriott, Hilton, Ritz Carlton, etc. There are also marquee clients in its Annuity assets business from whom the company generates ~41% of revenues. Company’s consolidated revenues/EBIDTA have grown at a CAGR of 26%/33% during FY22-24. However, Co has incurred losses at bottom-line due to higher finance costs. Post IPO, it will be utilizing Rs 1,400 cr to repay debt which will help reduce finance cost and improve profits going forward. At upper price band, Stock is available at an EV/EBIDTA of 22.8x for FY24 and we recommend ‘Subscribe’ to the issue.

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SEBI Registration number is INH0000017660