Blackstone-Backed Ventive Hospitality Sets Price Band For Rs 1,600-Crore IPO

The initial public offering of Blackstone-backed Ventive Hospitality Ltd. will open for bidding this week at a price band of Rs 610-643 per share, according to the price band advertisement on Monday.

Bids can be made for a minimum of 23 shares, and then in multiples thereof. The hotel operator has downsized its maiden public offer to Rs 1,600 crore from the earlier planned Rs 2,000 crore.

The offer is purely a fresh issue, and up to Rs 1,400 crore of the share sale proceeds will be used to fund repayment and prepayments of debts, according to the red herring prospectus.

The company has a price-to-earnings ratio of 40.39 times for the fiscal ended March 2024 at the upper end of the price band, the statement said. While 75% of the offer is reserved for qualified institutional buyers, 10% is available for retail investors and another 15% for non-institutional bidders.

The shares will be listed on both the National Stock Exchange and the BSE. The IPO will open for subscription on Dec. 20, 2024, and close on Dec. 24, 2024. The anchor investor bid period will begin on Dec. 19, 2024.

JM Financial Ltd., Axis Capital Ltd., HSBC Securities and Capital Markets Pvt., ICICI Securities Ltd., IIFL Capital Services Ltd., Kotak Mahindra Capital Co. and SBI Capital Markets Ltd. are the book-running lead managers for the IPO.

Ventive Hospitality is a hospitality asset owner primarily focused on luxury offerings across business and leisure segments in India and the Maldives. At present, Panchshil holds a 60% stake in Ventive, while Blackstone owns the remaining 40% stake.

The joint venture operates a portfolio of 11 operational assets in India and Maldives, including JW Marriott, Pune. The company operates 2,036 hotel keys across the luxury, upper upscale and upscale segments. Other properties include Marriott Suites, Double Trees by Hilton, Marriott Aloft Whitefield and Marriott Aloft ORR in Bengaluru.