Ventive Hospitality IPO Subscribed 71% on Day 1

Ventive Hospitality Ltd’s initial public offer (IPO) saw a 71% subscription on its first day of bidding, as investors showed strong interest in the hospitality company’s stock. The IPO, which launched on Friday, received bids for 1,02,39,485 shares, out of the 1,44,34,453 shares on offer, according to data from the National Stock Exchange (NSE).

The Qualified Institutional Buyers (QIBs) segment was the most oversubscribed, receiving 1.05 times the bids, while the Retail Individual Investors (RIIs) category saw a 61% subscription. Non-Institutional Investors (NIIs) had a slower response, with only 10% of the allotted shares subscribed. Ventive Hospitality, a joint venture between Blackstone and Panchshil Realty, is seeking to raise funds through a fresh issue of equity shares with no offer-for-sale component. The company has already raised Rs 719 crore from anchor investors ahead of the IPO, which is priced between Rs 610-643 per share. The proceeds from the IPO will primarily be used to reduce debt, including the payment of accrued interest. As of September 2024, Ventive’s portfolio includes 11 operational properties across India and the Maldives, with a total of 2,036 keys. The company specializes in luxury and upscale hospitality assets, with properties operated by global brands like Marriott, Hilton, and Minor. The IPO will close on December 24, 2024. The issue is managed by JM Financial, Axis Capital, ICICI Securities, and several other leading book-running managers.