Ventive Hospitality, backed by Blackstone, is all set to launch its ₹1,600-crore IPO today with a price band of ₹610-643 per share. The IPO allows bidding for a minimum of 23 shares and in multiples of 23 thereafter.
The allocation of the net issue will be 75% for Qualified Institutional Buyers, 15% for non-institutional investors, and the remaining 10% for retail investors. In addition, eligible employees can avail a discount of ₹30 per share in the employee reservation portion.
Prior to the IPO, Ventive Hospitality allocated 1,11,90,513 shares to 26 anchor investors, raising ₹719.55 crore at ₹643 per share. Among the anchor investors, domestic mutual funds accounted for 43.08% of the total allocation. The anchor investors include a mix of mutual funds, insurance companies, long only funds, sovereign funds, and domestic wealth funds.
The funds raised through the IPO will be utilized for purposes such as repayment or prepayment of borrowings, including payment of accrued interest. The lead managers for the IPO are 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.
Overall, the Ventive Hospitality IPO presents a promising investment opportunity with strong anchor investor interest and a clear plan for fund allocation. It will be interesting to see how the IPO performs in the market and how the company utilizes the raised capital to further its business objectives.
