Ventive Hospitality Raises Rs 719 Crore from Anchor Investors Ahead of Upcoming IPO

Ventive Hospitality, supported by Blackstone, announced on Thursday that it has raised Rs 719 crore from anchor investors. This announcement comes just before the opening of its initial public offering (IPO) for subscription. The funding attracted interest from mutual funds, insurance companies, long-only funds, sovereign funds, and domestic wealth funds.

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The company has allocated 1.12 crore equity shares to 26 funds at Rs 643 each, which is the top end of the price range. This allocation totals Rs 719.55 crore. Notable investors include Government Pension Global Fund, Allspring Global Investment LLC, Quant Mutual Fund, JM Financial MF, SBI General Insurance Company, and SBI Life Insurance Company.

IPO Details and Allocation

The IPO will open for public subscription on December 20 and close on December 24. The issue is priced between Rs 610 and Rs 643 per share. It is entirely a fresh issue of equity shares worth up to Rs 1,600 crore with no offer-for-sale component. Of the total allocation to anchor investors, 43% was given to four domestic mutual funds through eight schemes.

Ventive Hospitality plans to use the net proceeds from the IPO to fund debt repayment, including interest accrued. Investors can bid for a minimum of 23 equity shares and in multiples thereafter.

Company Background and Stakeholders

Ventive Hospitality, previously known as ICC Realty, is a joint venture between Blackstone Group from the US and Panchshil Realty. Panchshil holds a 60% stake in Ventive, while Blackstone owns the remaining 40%. The company focuses on luxury hospitality assets in India and the Maldives.

As of September 2024, Ventive's portfolio includes 11 operational properties with a total of 2,036 keys across luxury, upper upscale, and upscale segments. These assets are managed by or franchised from international operators like Marriott, Hilton, Minor, and Atmosphere.

Management and Lead Managers

The book-running lead managers for this issue are JM Financial, Axis Capital, ICICI Securities, IIFL Securities, Kotak Mahindra Capital Company, SBI Capital Markets, and HSBC Securities and Capital Markets India Pvt Ltd.

Ventive Hospitality's strategic move to raise capital through its IPO reflects its commitment to expanding its luxury offerings in key markets. By leveraging its partnerships with global operators and focusing on high-end segments, the company aims to strengthen its position in the hospitality industry across India and the Maldives.