Brigade Hotel IPO subscribed 48% on Day 1 so far: GMP hints at 9% listing pop
Brigade Enterprises
, was subscribed 48% on the first day of bidding on Thursday, buoyed by strong interest from retail and non-institutional investors.
By 2:36 pm on day 1, the retail tranche had been bid 1.94 times, while the non-institutional investor (NII) category saw 30% subscription. The quota for qualified institutional buyers (QIBs) received 8% bids.
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GMP of Brigade Hotel IPO
In the unofficial grey market, Brigade Hotel shares were trading at a premium of Rs 8 over the issue's upper price band of Rs 90, indicating a potential listing price of Rs 98 and an implied 8.9% upside.
IPO details
The IPO, comprising a fresh issue of 8.44 crore shares, is priced in a range of Rs 85–90 per share and will remain open until July 28. The stock is scheduled to debut on both BSE and NSE on July 31.
Portfolio and growth plans
BHVL operates nine upscale hotels with 1,604 rooms across key South Indian cities, including Bengaluru, Chennai, Kochi, and Mysuru, as well as GIFT City in Gujarat. These properties are managed under marquee hospitality brands such as Marriott, Accor, and IHG.
The company posted an average occupancy rate of 76.8% in FY25, well above the industry average of 64.5%. BHVL aims to expand its portfolio to 14 hotels with 2,560 keys by FY29, with upcoming projects including a Grand Hyatt in Chennai and a Ritz-Carlton wellness resort in Kerala.
Financials and valuation
Revenues grew from Rs 350 crore in FY23 to Rs 468 crore in FY25, supported by a strong operating performance, with EBITDA margins holding at 35%. However, net profit slipped to Rs 23.7 crore in FY25 from Rs 31 crore the previous year, while return ratios remain subdued.
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At the top end of the price band, the issue is valued at a price-to-earnings (P/E) multiple of 125x and a price-to-book (P/B) of 32.3x — levels that outstrip peers such as Lemon Tree Hotels and Indian Hotels Co.
Analyst view
Brokerages remain divided. Ventura Securities has issued a 'Subscribe' rating, citing the company's premium asset base and strong brand partnerships, while Canara Bank Securities has cautioned about steep valuations, suggesting only long-term investors consider the offer.
Given its strategic presence in South India, premium affiliations, and expansion pipeline, BHVL is well-positioned to ride India's hospitality upcycle. Yet, the subdued grey market premium of 9% and the lofty valuation metrics suggest limited near-term listing gains.
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