Ventive Hospitality Limited, a luxury hotel chain backed by Blackstone, has launched its ₹1,600 crore Initial Public Offering (IPO) on December 20, 2024. The IPO is open for subscription until December 24, 2024, and is expected to be a significant event in the stock market. Here’s all the important information you need to know about this IPO
The Ventive Hospitality IPO involves a new issue of 2.5 crore shares, with a target to raise ₹1,600 crore. The price band for the IPO has been set between ₹610 and ₹643 per share. This means investors can buy shares within this price range, with the upper price band being ₹643. The IPO will close on December 24, 2024, and shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 30, 2024.
Before the official listing, the shares of an IPO can trade in the grey market. The Grey Market Premium (GMP) for the Ventive Hospitality IPO is presently ₹66. This means that investors who are buying the IPO shares at ₹643 (the upper price band) are expecting a listing price of ₹709. This would represent a 10% premium over the issue price, based on the current GMP.
Subscription Status on Day 1
As of the first day of the subscription, December 20, the Ventive Hospitality IPO had received bids for approximately 5% of the total shares. Specifically, bids had been received for 6,86,849 shares, against the total offer of 1,44,34,453 shares.
- The retail segment, allocated for individual investors, was subscribed 21%.
- The non-institutional investor (NII) portion had received 3% of bids.
- The segment allocated for employees was subscribed 52%.
- The Qualified Institutional Buyer (QIB) portion had not yet seen any subscription by the first day.
Key Features of Ventive Hospitality IPO
- Price Band: The price band for the IPO is ₹610 to ₹643 per share.
- Lot Size: The minimum investment for retail investors is ₹14,789, which is the cost of 23 shares at the upper price band.
- Reservation: The IPO is divided into three portions:
- 75% of the offering is set aside for Qualified Institutional Buyers (QIBs),
- 15% is reserved for Non-Institutional Investors (NIIs),
- 10% is reserved for retail investors.
- No Offer for Sale (OFS): This IPO is a fresh issue, meaning no existing shares are being sold by promoters or investors. The company is issuing new shares to raise funds.
Ventive Hospitality is a leading player in the hospitality sector, with luxury hotels and resorts located in India and the Maldives. The company has a strong track record and is backed by Blackstone, a global investment firm.
IPO Allotment and Listing Dates
The IPO allotment will be finalized on December 26, 2024, and shares will be listed on the BSE and NSE on December 30, 2024. The allotment process follows the T+1 rule, meaning it will be done the day after the IPO closes. However, since December 25 is a holiday, the allotment will happen on December 26.
The Ventive Hospitality IPO presents an interesting opportunity for investors looking to get into the luxury hospitality sector. However, the cyclical nature of the hospitality industry and its sensitivity to economic conditions should be kept in mind. If you’re thinking of applying, ensure it fits within your investment goals and risk tolerance.
Stay updated on the subscription status and make your decision accordingly, as this IPO could be an exciting addition to your investment portfolio.
