Ventive Hospitality’s initial public offering saw a modest response on Day 1, with a 0.71 subscription.
Blackstone-backed Ventive Hospitality’s ₹1,600-crore IPO, which opened in a price band of ₹610-643, received bids for 1.02 crore shares against 1.44 crore shares on offer. The IPO will close on December 24.
Bids can be made for a minimum of 23 shares and in multiples of 23, thereafter.
Up to 75 per cent of the net issue would be available for allocation on a proportionate basis to qualified institutional buyers, 15 per cent for non-institutional investors, and the balance 10 per cent for retail investors. A discount of ₹30 a share is being offered to eligible employees bidding in the employee reservation portion (17,241 shares). While the QIB portion was subscribed 1.05 times, NIIs remained muted as their portion saw bids only 0.10 times. The retail portion received bids for 0.61 times, while employees saw aggressive bidding at 1.82 times.
- Also read: Ventive Hospitality IPO: Should you invest?
Anchor investors
It has allotted 1,11,90,513 shares to 26 anchor investors and raised ₹719.55 crore ahead of the IPO at the upper end of the price band at ₹643 an equity share. Of the total allocation of 1,11,90,513 equity shares to the anchor investors, 48,21,122 equity shares (i.e. 43.08 per cent of the total allocation to anchor investors) were allocated to four domestic mutual funds through a total of eight schemes.
The anchor book received strong demand from mutual funds, insurance companies, long-only funds, sovereign funds, and domestic wealth funds. It is an optimum mix of domestic and foreign investors. A few of the marquee investors include Government Pension Global Fund, Allspring Global Investment LLC, Tata Absolute Return Fund, Quant Mutual 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.
Utility of funds
The company proposes to utilise the net proceeds towards funding the following objects: the repayment/prepayment, in part or full, of certain borrowings availed by the company, including the payment of accrued interest thereon.
JM Financial Limited, Axis Capital Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd are the book-running lead managers to the issue.
