Ventive Hospitality, a company backed by Blackstone, is currently in the midst of its initial public offering (IPO) which has garnered a modest response so far. The IPO, which is worth ₹1,600 crores, has been subscribed 1.28 times at the end of Day 2.
The IPO, offered in a price range of ₹610-643 per share, received bids for 1.84 crore shares against the 1.44 crore shares on offer. This offering consists entirely of fresh shares, meaning that the funds raised will be directed towards the company’s use.
Investors can bid for a minimum of 23 shares and in multiples of 23 thereafter. The allocation for institutional investors is set at 75%, non-institutional investors at 15%, and retail investors at 10%. For eligible employees participating in the IPO, a discount of ₹30 per share is being offered. The subscription rates for different investor categories are as follows: QIBs at 1.22 times, NIIs at 1.07 times, retail investors at 1.76 times, and employees at 4.91 times.
Leading up to the IPO, the company allocated 1,11,90,513 shares to 26 anchor investors, raising ₹719.55 crores at a price of ₹643 per share. The anchor book saw strong interest from a diverse group of investors, including mutual funds, insurance companies, long-only funds, sovereign funds, and domestic wealth funds.
The proceeds from the IPO will be utilized to repay or prepay certain borrowings, including accrued interest. The lead managers for the IPO are JM Financial Limited, Axis Capital Ltd, HSBC Securities and Capital Markets, ICICI Securities Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd.
In conclusion, Ventive Hospitality’s IPO has garnered a moderate response so far, with a diverse group of investors showing interest in the company. The funds raised will be utilized to strengthen the company’s financial position and support its growth initiatives. Investors and market analysts will be closely watching the developments as the IPO enters its final day of subscription.
