Ventive Hospitality, a Blackstone-backed joint venture, announced on Thursday that it had successfully mobilized Rs 719 crore from anchor investors just one day before the launch of its much-anticipated initial public offering (IPO). The funding round, characterized by strong demand, has set the stage for the company’s public subscription, scheduled between December 20 and December 24.

Robust Participation from Marquee Investors

High-profile anchor investors: Ventive Hospitality’s anchor allocation saw robust participation from marquee investors, including Government Pension Global Fund, Allspring Global Investment LLC, Quant Mutual Fund, JM Financial MF, SBI General Insurance Company, and SBI Life Insurance Company. These investments highlight confidence in the company’s market potential.

Details of the anchor allocation: According to a circular on BSE's website, the company allocated 1.12 crore equity shares to 26 funds at Rs 643 per share, the upper limit of the price band. This move aggregated the transaction size to Rs 719.55 crore.

Domestic mutual fund participation: Of the total allocation, 43 percent of equity shares were allotted to domestic mutual funds via eight schemes, showcasing strong demand from institutional investors within India.

Key IPO Details

IPO structure: The issue is a fresh offering of equity shares worth up to Rs 1,600 crore, with no offer-for-sale component. This indicates that all proceeds will directly benefit the company rather than existing shareholders.

Price band and bidding details: The IPO price band is set between Rs 610 and Rs 643 per share. Interested investors can place bids for a minimum of 23 shares and multiples thereafter.

Utilization of proceeds: Ventive Hospitality plans to allocate the net proceeds from the IPO toward debt repayment, including accrued interest. This strategic move is aimed at strengthening the company’s financial position.

Ventive Hospitality: A Partnership of Global Expertise

Joint venture origins: Formerly known as ICC Realty, Ventive Hospitality is a joint venture between US-based Blackstone Group and India’s Panchshil Realty. The ownership is split, with Panchshil holding 60 percent and Blackstone owning the remaining 40 percent.

Hospitality focus: The company specializes in luxury hospitality assets across both business and leisure segments in India and the Maldives, targeting an upscale clientele.

Diversified Portfolio and Global Alliances

Portfolio overview: As of September 2024, Ventive Hospitality’s portfolio includes 11 operational properties, boasting a total of 2,036 keys across luxury, upper upscale, and upscale segments.

Partnerships with global operators: All of Ventive’s properties are either operated by or franchised from global hospitality giants such as Marriott, Hilton, Minor, and Atmosphere. These collaborations ensure consistent quality and international standards across its assets.

Strategic Positioning in Premium Hospitality

Focus on luxury markets: Ventive Hospitality’s concentration on high-end offerings positions it as a premier player in India’s and the Maldives’ growing luxury hospitality markets. This focus aligns with the increasing demand for premium travel and stay experiences in these regions.

Expanding footprint: With properties in sought-after destinations, the company is poised to leverage the growing demand for luxury hospitality in both business and leisure markets.

Lead Managers and Industry Confidence

Book-running lead managers: The IPO is managed by a consortium of prominent financial institutions, including JM Financial, Axis Capital, ICICI Securities, IIFL Securities, Kotak Mahindra Capital Company, SBI Capital Markets, and HSBC Securities and Capital Markets (India). Their involvement underscores confidence in Ventive’s market readiness and future growth.

Strong demand signals: The significant participation from anchor investors reflects optimism about Ventive Hospitality’s growth trajectory and strategic vision.