Ventive Hospitality IPO: Blackstone-backed firm raises ₹719.5 crore from anchor investors ahead of public issue

Ventive Hospitality Limited raised ₹719.5 crore from anchor investors ahead of its public issue, according to an exchange filing by the company on Thursday, December 19.

The luxury hospitality provider allocated 1,11,90,513 or 1.11 crore equity shares to the anchor investors at an allocation price of ₹643 per share, with a face value of Re 1 apiece. 

The anchor investor pool for the Ventive Hospitality IPO comprises Quant Mutual Fund, Government Pension Global Fund, Allspring Global Investment LLC, Tata Absolute Return Fund, Aditya Birla India Fund, SBI General Insurance Company Limited, SBI Life Insurance Company Limited, Nuvama, JM Financial Mutual Fund and 360 One Income Opportunities Fund, among other top investors.

According to the exchange filing by the company on Thursday, Quant Mutual Fund via the Quant Small Cap Fund at 20.57 per cent, Government Pension Global Fund at 4.17 per cent, Maybank Securities Pte Ltd at 15.01 per cent, SBI General Insurance Co. at 3.47 per cent, JM Financial at 3.47 per cent, were among the top allocations for the Ventive Hospitality IPO.

The global luxury hotel’s firm also said that 43.08 per cent of the allocation to anchor investors was allocated to four domestic mutual funds through a total of eight schemes.

“The company will utilize ₹14,000 million to repay debt which will help reduce finance cost and improve profits for the company going forward,” said analysts at Anand Rathi in an IPO note, recommending the IPO to “Subscribe for Long Term.” 

Ventive Hospitality IPO GMP

As of December 19, the grey market premium (GMP) for Ventive Hospitality’s public issue stands at ₹63 per share. With the upper price band of the issue at ₹643, the public issue is expected to be listed on the exchanges at ₹706 per share, a premium of 9.8 per cent, according to data collected from Investorgain.com.

Grey market premium (GMP) is an indicator of the investors’ willingness to pay more for a public issue. The GMP jumped to ₹63 from its previous level of ₹0 or nil on December 19 after the anchor data was out. 

Ventive Hospitality IPO Details 

Ventive Hospitality Limited, through a book-built issue, is offering an entire fresh issue of 2.49 crore equity shares as the company aims to raise ₹1,600 crore from the stock markets. 

The company is a hospitality provider focused primarily on business and leisure segments. Ventive focuses on developing and managing high-end luxury hotels and resorts. The properties are operated by Marriott, Hilton, Minor and Atmosphere. 

The public issue will open for subscription on Friday, December 20, and will close on Tuesday, December 24. The company has fixed the price band for the public issue in the range of ₹610 to ₹643 per share, with a lot size of 23 shares per lot. The shares are expected to be listed on the stock exchanges on Monday, December 30. 

JM Financial Limited, Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, ICICI Securities Limited, IIFL Securities Ltd, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited are the book-runners for the public issue, while KFin Technologies is the registrar for the offer.