Brigade Hotel Ventures Ltd Launches ₹760 Crore IPO to Strengthen Hospitality Portfolio

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New Delhi: Brigade Hotel Ventures Ltd, the hospitality subsidiary of Bengaluru-based real estate developer Brigade Enterprises Ltd (BEL), is set to open its Initial Public Offering (IPO) on July 24. The subscription window will close on July 28, with the shares priced in the range of ₹85–₹90 per share (face value ₹10). The IPO will list on both the BSE and NSE on July 31.

IPO Details and Structure

The IPO consists of a fresh issue worth ₹759.6 crore, with no offer-for-sale component. The proceeds from the issue will be used for debt repayment, land acquisitions, and expansion initiatives.

Qualified Institutional Buyers (QIBs): 75% of the issue.
Non-Institutional Investors (NIIs): 15% of the issue.
Retail Investors: 10% of the issue.
Employee Quota: ₹75.96 million reserved.
Brigade Enterprises Shareholders: ₹303.84 million reserved.

The company conducted its anchor allocation on July 23, attracting institutional investors, with shares carrying a partial lock-in period.

Utilisation of Funds

Brigade Hotel Ventures plans to allocate ₹468.14 crore of the proceeds towards debt repayment and ₹107.52 crore for acquiring an undivided land share from its parent company, BEL. The remaining funds will be used for strategic acquisitions, new projects, and general corporate purposes.

Company Profile

Brigade Hotel Ventures Ltd, operational since 2004, is among the leading hospitality asset owners in South India. The company owns and operates nine hotels with a combined inventory of 1,604 rooms across cities like Bengaluru, Mysuru, Chennai, Kochi, and GIFT City. These properties are managed by renowned international hotel brands, including Marriott, Accor, and IHG.

With its current portfolio, Brigade Hotel Ventures is recognized as the second-largest chain-affiliated hotel asset owner in South India. The company aims to expand its capacity to 2,560 rooms by FY29, with five new hotel projects in the pipeline.

Financial Highlights

In FY25, the company reported revenue of ₹468.3 crore, representing a growth of 16.6% year-on-year, compared to ₹401.7 crore in FY24. However, net profit for FY25 stood at ₹23.7 crore, reflecting a 24% decline compared to the previous year, largely due to rising operational costs and industry cyclicality.

Valuation and Market Sentiment

At the upper price band of ₹90, the company’s market capitalization is estimated at ₹3,419 crore. The IPO has generated strong interest in the grey market, with a premium (GMP) of around ₹17, indicating an expected listing price of approximately ₹107 per share, or a 19% premium over the upper band.

Strengths and Risks

Key Strengths:

Strong presence in South India with properties in prime locations.
Partnerships with global hospitality brands like Marriott and Accor.
Backed by Brigade Enterprises Ltd, a reputable name in real estate and hospitality.

Key Risks:

Heavy revenue dependence on the Bengaluru market (over 60% of income).
Reliance on third-party management contracts with global operators.
Hospitality industry cyclicality, sensitive to economic slowdowns and travel trends.

Key Dates

Anchor Investor Bidding: July 23, 2025
IPO Opens: July 24, 2025
IPO Closes: July 28, 2025
Basis of Allotment: July 29, 2025
Refunds Initiated: July 29–30, 2025
Shares Credited to Demat Accounts: July 30, 2025
Listing on BSE & NSE: July 31, 2025

Outlook

Brigade Hotel Ventures Ltd’s IPO comes at a time when India’s hospitality sector is witnessing a strong recovery, supported by growing domestic and international travel demand. The company’s plan to utilize IPO proceeds to cut debt and expand its portfolio positions it for long-term growth. With solid brand alliances and an expanding footprint in South India, the IPO is likely to draw strong interest from both institutional and retail investors.