Ventive Hospitality Limited, the hospitality arm of Panchshil Group backed by Blackstone, has reportedly secured approval from the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at ?20 billion. The IPO will involve the fresh issuance of equity shares with a face value of ?1, aggregating to the total offering amount, as outlined in the draft red herring prospectus (DRHP).

Established as the hospitality division of Pune-based Panchshil Realty, Ventive, formerly known as ICC Realty (India) Private Limited, underwent a strategic shift in 2017 when BRE Asia, an affiliate of Blackstone (formerly Xander Investment Holding XVI Limited), acquired a 50% equity stake. This acquisition positioned BRE Asia as a co-majority stakeholder alongside Panchshil Realty.

Specialising in luxury hospitality, Ventive’s portfolio includes properties operated by or franchised from leading global hotel brands such as Marriott, Hilton, Minor, and Atmosphere. Key assets in its portfolio include JW Marriott Pune, The Ritz-Carlton Pune, Conrad Maldives, Anantara Maldives, and Raaya by Atmosphere Maldives.

As of 31 March 2024, Ventive reportedly operates 11 hospitality properties across India and the Maldives, totalling 2,036 keys across luxury, upper upscale, and upscale segments—a significant rise from the 83 keys it managed at its inception in 2007, according to the DRHP.

Ventive’s growth has been attributed to developmental projects and strategic acquisitions, enabling expansion into markets such as Bengaluru, Varanasi, and the Maldives. Alongside its stronghold in the luxury segment, the company has broadened its offerings in upper upscale and upscale properties in business hubs like Pune and Bengaluru. The DRHP highlights that luxury assets accounted for over 80% of pro forma revenue from hotel operations during FY24, FY23, and FY22. Ventive ranked third among its peers for pro forma revenue in FY24 and FY23 and second in FY22. Similarly, its pro forma EBITDA ranked third in FY24 and second in FY23 and FY22, underscoring its assets' strong performance in the competitive landscape.

Looking ahead, Ventive aims to capitalise on India’s economic growth and the Maldives’ status as a premier tourist destination. It plans to expand its portfolio by adding approximately 367 keys—an 18.02% increase—from 2,036 keys as of 31 March 2024 to an estimated 2,403 keys. Planned developments include projects in Varanasi and Bengaluru, as well as new ventures in Pottuvil near Sri Lanka’s Yala East National Park and Arugam Bay Beach.

The IPO’s Book Running Lead Managers 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.