Ventive Hospitality IPO listing: Shares list at 11% premium on bourses

Ventive Hospitality IPO listing: The listing was in line with the grey market estimates as the company's shares were quoted trading at Rs 723 apiece

Ventive Hospitality IPO listing: Ventive Hospitality shares made a decent D-street debut on Monday, December 30, 2024. The company's shares listed at Rs 718.15 apiece on the BSE, reflecting a premium of Rs 75.15 or 11.69 per cent over the issue price of Rs 643.

 

On the National Stock Exchange (NSE), Ventive Hospitality shares listed at Rs 716 per share, a premium of Rs 73 or 11.3 percent over the issue price of Rs 643.

 

Ventive Hospitality IPO listing also came almost in line with the grey market estimates as the company's shares were quoted trading at Rs 723 apiece, ahead of listing, revealed the sources tracking grey market activities. 

Citing that the company made a quiet stock market debut, Shivani Nyati, head of wealth at Swastika Investmart, said, "Those who took part in the initial public offering (IPO) may take listing gains profit only."

 

 

"The company demonstrates an established history of development and acquisition-led expansion. However, pro forma numbers indicate negative financial performance, raising caution. The company’s debt burden has increased, adding to the financial risks," Nyati added.

 

The Rs 1,600 crore offering of Ventive Hospitality comprises an entirely fresh issue of 2,48,83,358 shares. The public offering, which was available at a price band of Rs 610-643 with a lot size of 23 shares, ended up getting oversubscribed by 9.82 times, as per data available on the National Stock Exchange (NSE).

 

As per the Red Herring Prospectus filed by Ventive Hospitality, the proceeds from the public offering are to be used for the repayment/prepayment, in part or full, of certain borrowings availed by the company, including payment of interest accrued thereon; and Step-down Subsidiaries, namely SS & L Beach and Maldives Property Holdings, including the payment of interest thereon through investment in such step-down Subsidiaries. The company will use the remaining amount for general corporate purposes.

 

Kfin Technologies is the registrar for the issue, while JM Financial, Axis Capital, HSBC Securities & Capital Markets, ICICI Securities, IIFL Securities, Kotak Mahindra Capital Company, and SBI Capital Markets are the book-running lead managers.

 

Ventive Hospitality, Incorporated in 2002, is a hospitality owner with a primary focus on luxury offerings across business and leisure segments. All of the company’s hospitality assets are operated by or franchised from global operators, including Marriott, Hilton, Minor, and Atmosphere. The company was founded as the hospitality division of Panchshil Realty, a real estate conglomerate based in Pune, which has a presence across the commercial, retail, luxury residential, and data center segments.