Tue Dec 24 18:13:00 UTC 2024: **Ventive Hospitality IPO Oversubscribed, Likely to List at 10% Premium**

MUMBAI, INDIA – Ventive Hospitality Ltd., the Blackstone-backed hospitality firm, saw its initial public offering (IPO) fully subscribed on its second day of bidding. The IPO, a ₹1,600 crore fresh issue, priced shares between ₹610 and ₹643. Market speculation, reflected in the grey market premium (GMP), suggests a likely listing price around ₹710, representing a 10.42% gain over the upper end of the IPO price band.

Ventive, a joint venture between Panchshil Realty (60% stake) and Blackstone (40%), operates 11 luxury hotels in India and the Maldives, including prominent Marriott and Hilton properties. The company plans to use the majority of IPO proceeds to repay debt.

The IPO received strong investor interest, oversubscribed 9.8 times overall. Qualified institutional buyers subscribed 9.08 times, non-institutional investors 13.85 times, and the employee portion 9.49 times.

Ventive reported a 27% increase in net profit to ₹166 crore in the last financial year, alongside an 11% rise in revenue to ₹478 crore. However, the company’s prospectus notes that it has experienced losses on a pro forma basis in recent years and highlights risks associated with its reliance on third-party operators and geographical factors. Future plans include expanding its portfolio and increasing its presence in key markets.

While the grey market premium indicates strong initial investor sentiment, potential investors are cautioned that GMP is unofficial and speculative. Investors are advised to consult financial advisors and review the red herring prospectus before investing.

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