Ventive Hospitality Ltd, the joint venture between private equity major Blackstone and Indian developer Panchshil Realty, made modest gains at its stock market debut.
Shares of Ventive Hospitality listed on BSE Ltd at Rs 718 apiece, an approximate 12% rise from its initial public offering price of Rs 643. It hit a high of Rs 748 before easing off to Rs 720 in late morning trade.
Ventive Hospitality’s IPO, which was an entire fresh sale of 24.88 million shares, got subscribed approximately 10 times.
Institutional investors bid for 9.08 times the portion reserved for them while non-institutional investors placed bids for 13.87 times their quota. The retail investors’ portion was covered 5.94 times.
The trimmed-down IPO size of Rs 1,600 crore consisted entirely of a fresh issuance of shares.
Of the total amount raised, the hospitality firm intends to use Rs 1,400 crore to repay debt or make advance payment of its loans.
Blackstone owns around a 36% stake in the company. The world’s biggest buyout firm invested Rs 1,450 crore ($172.6 million) through a preferential allotment to help Ventive acquire a bunch of luxury hotels across India and the island nation of the Maldives. Blackstone’s investment came after several Panchshil group companies and individuals invested Rs 1,170 crore in Ventive.
Ventive Hospitality has 11 assets in India and Maldives with 2,036 keys as on September 30. In addition, it owns and operates three office parks and one Grade A retail space. The company’s portfolio includes the JW Marriott and The Ritz-Carlton in Pune, and Conrad, Anantara and Raaya by Atmosphere in the Maldives.
Meanwhile, shares of Carrao India had a disappointing start to its listing today as it opened 7.5% below its IPO price of Rs 704.
Carraro India, a unit of Italian vehicle transmission systems manufacturer Carraro International, makes axles and transmission systems for agricultural tractors and construction vehicles in India.