Shares of Blackstone-backed Ventive Hospitality Ltd. debuted on the BSE at Rs 718.15 per share, marking a premium of 11.7%, over the issue price of Rs 643 per share. The stock listed on the National Stock Exchange at Rs 716 apiece, at a premium of 11.3%.
The 1,600-crore maiden offering was subscribed 9.8 times on its final day of bidding, led by non-institutional investors. The price band was set in the range of Rs 610–Rs 643 per share. The market value at the upper end of the price band is Rs 15,017 crore.
At present, Panchshil holds a 60% stake in Ventive Hospitality, while Blackstone owns the remaining 40%. The joint venture operates a portfolio of 11 operational assets in India and Maldives, including JW Marriott in Pune.
The company plans to use up to Rs 1,400 crore of the share-sale proceeds to fund repayment and prepayments of debts, according to the red herring prospectus.
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. were the book-running lead managers for the issue.
Ventive Hospitality is a hospitality asset owner primarily focused on luxury offerings across business and leisure segments in India and the Maldives.
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.
Ventive Hospitality reported a 27% rise in net profit at Rs 166 crore in the last financial year from Rs 131 crore in the previous fiscal. Revenue was up 11% to Rs 478 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 27% to Rs 284 crore. The Ebitda margin expanded to 59.4% from 55.5%.
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