NE BUSINESS BUREAU
CHENNAI, SEPT 12
US based private equity major Blackstone Group and Pune-based Panchshil Realty’s recently formed joint platform Ventive Hospitality Limited (Formerly known as ICC Realty (India) Private Limited), a hospitality asset owner with a primary focus on luxury offerings across business and leisure segments, has filed its Draft Red Herring Prospectus with market regulator Securities and Exchange Board of India.
- The company’s operating profit for the financial year 2023-24 stood at Rs 870 crore
- The company is planning to use Rs 1,600 crore from the fresh issue to repay or prepay debt availed by it and its subsidiaries. The remaining funds will be used for general corporate purposes
The Company’s initial public offering comprises a fresh issue of Equity Shares of face value of ₹1 each aggregating up to ₹2,000 Crores. The total offer size comprises up to Equity Shares of face value of ₹1 each aggregating up to ₹2,000 Crores.
The company is planning to use Rs 1,600 crore from the fresh issue to repay or prepay debt availed by it and its subsidiaries. The remaining funds will be used for general corporate purposes.
Ventive Hospitality Limited, formerly known as ICC Realty (India) Private Limited was founded as the hospitality division of Panchshil Realty, a real estate conglomerate based in Pune which has a presence across the commercial, retail, luxury residential and data center segments. In 2017, pursuant to the acquisition of a 50% stake in the company, BRE Asia (formerly known as Xander Investment Holding XVI Limited), an affiliate of Blackstone, became 50% shareholder in the company.
Ventive Hospitality Limited is a hospitality asset owner with a primary focus on luxury offerings across business and leisure segments. All of the hospitality assets are operated by or franchised from global operators, including Marriott, Hilton, Minor and Atmosphere. The luxury hospitality assets comprise JW Marriott, Pune, The Ritz-Carlton, Pune, Conrad, Maldives, Anantara, Maldives and Raaya by Atmosphere, Maldives. The portfolio comprises 11 operational hospitality assets in India and Maldives, totalling 2,036 keys across the luxury, upper upscale and upscale segments as at March 31, 2024, compared to the 83 keys in 2007 when it commenced operations.
Ventive Hospitality Limited has a proven track record of developing and acquiring marquee hotel assets across various geographies and different hospitality segments. Through the development and acquisition-led expansion, they have scaled up the portfolio and forayed into new geographies such as Bengaluru, Varanasi and the Maldives within the past few years. In addition to the luxury hospitality assets, they have developed and acquired assets in upper upscale and upscale segments, which serve as complementary offerings in the business hubs of Pune and Bengaluru in India. As at March 31, 2024, the operating portfolio consists of seven hospitality assets with 1,331 keys which were developed by them and four hospitality assets with 705 keys which were acquired by them. As part of our expansion, they have added 1,070 keys since 2019, which comprise more than 50% of the number of keys in the portfolio as at March 31, 2024
The luxury hospitality assets collectively contributed to over 80% of the pro forma revenue from hotel operations for FY24, FY23 and FY22. The pro forma revenue and pro forma EBITDA were the highest among listed hospitality asset owners in India in FY24, FY23 and FY22. Among listed hospitality companies in India, the pro forma revenue was the third highest in each of FY24 and FY23 and second highest for FY22 and the pro forma EBITDA was the third highest in FY24 and second highest for each of FY23 and FY22.
The company’s operating profit for the financial year 2023-24 stood at Rs 870 crore, showed the draft red-herring prospectus.
The company believes that they are well-positioned to benefit from growing hospitality demand in conjunction with relatively low new supply in the key markets. India is among the fastest growing major economies in the world, while Maldives has been ranked consistently as one of the best tourist island destinations globally. The company plans to continue focusing on the core strength of developing luxury and upscale hospitality assets and to increase the number of keys across the hospitality assets by an estimated 367 keys or 18.02%, from 2,036 keys as at March 31, 2024 to approximately 2,403 keys in FY2028 through planned development and expansion initiatives in Varanasi, Uttar Pradesh and Bengaluru, Karnataka in India and Pottuvil, near Yala East National Park and Arugam Bay Beach in Sri Lanka.
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, SBI Capital Markets Limited are the Book Running Lead Managers to the issue.
