IPO frenzy: Ventive Hospitality, Carraro, Senores Pharma get bids worth ₹41,300 cr for ₹3,432 cr issue

Despite elevated uncertainty and volatility in the secondary market, the primary market remained resilient as investors continue to invest in initial public offerings (IPO) to cash-in on strong listing gains. Three IPOs closed their bidding process today, garnering bids worth ₹41,300 crore for their ₹3,432 crore issue, reflecting sustained appetite in the primary market. Senores Pharmaceuticals, Ventive Hospitality, and Carraro India launched their IPOs on December 20, while the tentative date for listing of their shares on domestic bourses is December 30.  

As per exchange data, the ₹1,600 crore IPO of Ventive Hospitality, a joint venture between Blackstone Group and Panchshil Realty, received 10.33 times bidding worth ₹9,096 crore on the final day of bidding. The public issue subscribed 6.19 times in the retail category, 9.58 times in qualified institutional buyer (QIB) segment, and 14.6 times in the non-institutional investor (NII) space.

On the other hand, the ₹1,250 crore IPO of transmission systems manufacturer Carraro India received relatively muted response, with the issue receiving 1.18 times bidding. The IPO was subscribed 0.75 times in the retail category, 2.33 times in QIB, and 0.63 times in the NII segments.

Meanwhile, Senores Pharmaceuticals’ ₹582 crore issue garnered an overwhelming response from investors, getting bids worth ₹31,171.77 crore, or 97.86 times. The IPO of the pharma company was booked 93.16 times in the retail category, 97.84 times in QIB, and 100.35 times in the NII category.

The IPO of Ventive Hospitality was completely a fresh issue of equity shares with no offer for sale component (OFS). The price band was fixed at ₹610-643 per share, and the minimum lot size for an application was 23 and in multiples thereafter. The Pune-based hospitality asset owner intends to use ₹1,400 crore to repay its debt and the remaining ₹200 crore will be used to meet general corporate purposes. As of September 30, 2024, the total debt of the company stood at ₹3,609.5 crore.

Carraro India’s issue was entirely an offer for sale of 1.78 crore shares by promoters. The issue was offered at a price band of ₹668-704 per share and the lot size was 21 shares and in multiples thereafter.

The issue of Senores Pharmaceuticals was a combination of fresh issue worth ₹500 crore and offer for sale of 0.21 crore shares worth ₹82.11 crore. The IPO price band was ₹372-391 per share and the minimum lot size for an application was 38 shares. The capital raised from fresh equities is intended to be used for investment in subsidiaries, repayment of debts, and funding working capital requirements.

Earlier on Monday, 5 IPOs closed their bidding with robust oversubscription, led by Mamata Machinery (195 times), DAM Capital Advisors (82 times), and Transrail Lighting (81 times). The IPO of Sanathan Textiles closed with 35 times subscription, and Concord Enviro received nearly 11 times bidding on the final day.