Brigade Hotel Ventures IPO subscribed over 1.3x on day 3: GMP signals flat listing

Economic Times

5 days ago

All proceeds from the offer will go towards funding business growth, with no Offer for Sale component.
Investors can apply for a minimum of 166 shares, with bids accepted in multiples, until the issue closes on July 28. Share allotment is likely on July 29, with the stock expected to list on both BSE and NSE on July 31. The IPO, pegging the company's valuation at over Rs 3,400 crore at the upper price band, is a pure fresh issue.
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Brigade Hotel Ventures IPO GMP
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Brigade Hotel Ventures Business Overview
The initial public offering (IPO) of Brigade Hotel Ventures was subscribed 1.34 times as of 10:33 am on Monday, the third and final day of bidding.The IPO received bids for 6.85 crore shares against 5.11 crore on offer. Retail investors led the demand with a 5.18 times subscription, followed by non-institutional investors (NIIs) at 1.13 times. The qualified institutional buyer (QIB) portion was subscribed to just 8%.In the grey market, Brigade Hotel Ventures shares were trading at a premium of Rs 2, suggesting a modest 2% gain over the upper end of the price band—signalling the possibility of a flat listing.Investors can bid for a minimum of 166 shares and in multiples thereafter before the window closes on July 28. Share allotment is expected on July 29, and the listing is likely on July 31 on both BSE and NSE.At the upper end of the price band, the company is valued at over Rs 3,400 crore. The IPO is entirely a fresh issue with no Offer for Sale (OFS), meaning the proceeds will be used for business expansion.Of the Rs 759.6 crore being raised, Brigade Hotel Ventures plans to use Rs 468.14 crore to repay debt. Another Rs 107.52 crore will go towards acquiring an undivided share of land from its parent company, Brigade Enterprises . The rest will be allocated for strategic acquisitions and general corporate purposes.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.Founded in 2004, Brigade Hotel Ventures entered the hospitality sector in 2009 with its first property, Grand Mercure Bangalore. The company currently operates nine hotels across Bengaluru, Mysuru, Chennai, Kochi, and GIFT City in Gujarat, with a total of 1,604 keys.It manages properties under global hospitality brands like Marriott, Accor, and InterContinental Hotels Group (IHG), bolstering its brand and operational credibility.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)