Ventive Hospitality, a hospitality asset owner, is set to launch its INR 1,600 crore initial public offering (IPO) on December 20, 2024. The IPO, consisting entirely of a fresh issue of equity shares, will remain open until December 24, 2024. The proceeds will primarily be used for debt repayment and investment in subsidiaries. Managed by top-tier book-running lead managers, this IPO represents a significant milestone for Ventive Hospitality, which operates luxury hospitality assets in India and the Maldives.
Ventive Hospitality, a prominent name in the hospitality sector, is gearing up for its INR 1,600 crore initial public offering (IPO), with the price band expected to be announced on December 17, 2024. This highly anticipated IPO will open for subscription on Friday, December 20, 2024, and close on Tuesday, December 24, 2024, with anchor investor bidding scheduled for December 19, 2024.
The IPO comprises a fresh issue of equity shares with a face value of Re 1 each, aggregating to INR 1,600 crore. About 75% of the net issue will be reserved for qualified institutional buyers (QIBs), 15% for non-institutional bidders, and 10% for retail investors. Up to 60% of the QIB portion may be allocated to anchor investors on a discretionary basis, as per SEBI's ICDR regulations.
The net proceeds from the offering will be directed towards debt repayment and prepayment, including accrued interest, for the company and its subsidiaries, such as SS & L Beach and Maldives Property Holdings. This move underscores Ventive Hospitality's commitment to strengthening its financial position and expanding its footprint in the luxury hospitality space.
The company, founded as the hospitality division of Panchshil Realty, underwent a major transformation in 2017 when Blackstone, through its affiliate BRE Asia, acquired a 50% stake. The joint ownership has bolstered Ventive's portfolio, which now includes 11 operational assets in India and the Maldives, encompassing 2,036 keys across luxury, upper-upscale, and upscale segments as of September 30, 2024.
Ventive Hospitality's decision to go public comes under Regulation 6(2) of the SEBI ICDR Regulations, as the company does not meet the criteria under Regulation 6(1)(a) regarding net tangible assets. This marks its debut in the equity market, with no formal trading history of its shares.
The IPO is being managed by leading book-running lead managers, including JM Financial, Axis Capital, HSBC Securities, ICICI Securities, IIFL Securities, Kotak Mahindra Capital Company, and SBI Capital Markets.
With this IPO, Ventive Hospitality is poised to consolidate its position as a key player in the hospitality sector while offering investors an opportunity to participate in its growth journey.
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