Blackstone prepares to take two firms public amid buoyant markets

PE/VC majors have raised Rs 8,059 cr this year by offloading stakes in IPOs

With domestic stock markets trading around their highest levels, Blackstone Inc — the largest private equity (PE) investor in India with bets worth $50 billion (over Rs 4 trillion) — has started the process to list two of its portfolio companies: Ventive Hospitality, a joint venture with Panchshil Group, and International Gemological Institute (IGI), a diamond grading company.

Ventive Hospitality submitted its draft prospectus to the Securities and Exchange Board of India (Sebi) on Tuesday, weeks after IGI filed its papers to go public. In May this year, the American private equity major-backed Aadhar Housing Finance had launched its initial public offering (IPO).

Blackstone and its local partner aim to raise Rs 2,000 crore by selling together up to 10 per cent stake in Ventive Hospitality, while a similar-sized sale in IGI is expected to bring in Rs 4,000 crore. Blackstone currently holds a 37 per cent stake in Ventive Hospitality and a 100 per cent stake in IGI, which it acquired for $530 million (around Rs 4,450 crore) in May 2023.

Eager to capitalise on rich valuations, private equity firms are turning to India’s buoyant equity markets. In 2024 alone, PE and venture capital firms have raised Rs 8,059 crore through IPO exits, according to PRIME Database.

Last week, Hexaware Technologies -- backed by another US investment heavyweight Carlyle Group -- filed a draft red herring prospectus (DRHP) with Sebi in a bid to raise Rs 9,950 crore ($1.2 billion).

Earlier this year, InvestCorp PE Fund sold part of its stake in MediAssist, a third party administrator, while NewQuest Asia Investments diluted its stake in Firstcry.com’s parent firm Brainbees Solutions via an IPO last month.

A Blackstone spokesperson confirmed the firm’s plans for the Ventive Hospitality and IGI IPOs, subject to regulatory approvals and favourable market conditions.

 

According to a banker, Blackstone could pursue a listing of PGP Glass, a firm it acquired for $1 billion from the Piramal group in 2020. However, the spokesperson said Blackstone has no immediate plans for an exit or IPO from that investment.

Market conditions and investor demand will play a crucial role in determining the timing of any listing by Blackstone, said the banker, and noted the PE major had previously delayed Aadhar Housing Finance’s listing by three years in order to secure better valuation.

Last month, Blackstone sold a 20 per cent stake via block deals in its real estate investment trust, Nexus Select Trust, raising nearly Rs 4,500 crore. Nexus Select Trust, India’s first REIT backed by retail properties, is among the PE giant’s key assets in the country. In June, Blackstone also sold a 15.1 per cent stake in mid-tier IT company Mphasis, generating Rs 6,736 crore.

Blackstone has signalled further investment in India’s rapidly growing economy. In April, top executives announced plans to invest an additional $25 billion, focusing on infrastructure, data centers, and logistics. Of this, $17 billion will go towards new investments, while $7.5 billion will be dedicated to driving value creation across its current portfolio companies.