The initial public offering (IPO) of Ventive Hospitality Ltd., a leading hospitality asset owner, has garnered significant investor interest, being fully subscribed by the second day.
The IPO, which opened on December 20 and is set to close on December 24, has achieved an overall subscription rate of 1.28 times.
Investor participation has been robust across all categories:
The strong response from retail and employee categories underscores confidence in the company’s growth trajectory.
The IPO comprises a fresh issue of shares worth ₹1,600 crore, with a price band set at ₹610–₹643 per share. Investors can bid for a minimum of 23 shares and in multiples thereof. The proceeds from the issue will primarily be used to repay and prepay debts, with up to ₹1,400 crore earmarked for this purpose.
In the grey market, Ventive Hospitality’s shares are commanding a premium of ₹27 per share, indicating a potential listing price of ₹670. This reflects a 4.2% premium over the upper end of the price band. While the grey market premium (GMP) provides an early indication of investor sentiment, market conditions will ultimately determine the listing performance.
Ventive Hospitality operates a portfolio of 11 luxury hospitality assets across India and the Maldives, totaling 2,036 hotel keys. Key properties include the JW Marriott in Pune, with assets spanning both business and leisure segments. The company’s revenue in the financial year 2024 rose by 11% to ₹478 crore, while net profit increased by 27% to ₹166 crore.
The successful subscription on Day 2 reflects strong market confidence in Ventive Hospitality’s business model and growth prospects. With the hospitality sector poised for recovery and expansion, the company’s strategic focus on luxury assets positions it well for future opportunities.
Potential investors are advised to stay updated on market conditions and conduct thorough research before making investment decisions. The final day of the IPO will offer further insights into broader investor sentiment.
As the IPO enters its third day, investor activity is expected to intensify, particularly from institutional investors who often wait until the later stages to place significant bids. Retail participation could continue to show strength, with many investors aiming to capitalize on the company’s promising growth story and the robust performance of the hospitality sector.
Additionally, market analysts will closely monitor changes in the grey market premium, which could provide further hints about listing day performance. The final day of the IPO will also likely see a surge in subscription rates across categories, potentially driving the overall subscription figure significantly higher.
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