Brigade Hotel Ventures IPO: Shares trade at 17% GMP ahead of IPO opening. Check details
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About Brigade Hotel Ventures
Pre-IPO placement and investor allocation
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Brigade Hotel Ventures, the hospitality subsidiary of real estate firm Brigade Enterprises , is set to launch its initial public offering (IPO) on Thursday, July 24. The offering consists solely of a fresh issue valued at Rs 759.6 crore, with a price band of Rs 85 to Rs 90 per equity share.In the unlisted market, the company's shares are reportedly commanding a grey market premium (GMP) of Rs 15-16, hinting at a possible 16.7% listing gain over the IPO's upper price band. However, analysts advise caution as GMPs are speculative and may not reflect actual listing outcomes.The IPO will remain open for bidding until July 28. Investors can apply for a minimum lot size of 166 shares and in multiples thereafter. Share allotment is likely to be finalized on July 29, with the listing tentatively scheduled for July 31 on the BSE and NSE.At the top end of the price band, the company is estimated to have a post-issue valuation of over Rs 3,400 crore. Since the offer does not include any Offer for Sale (OFS), the full proceeds will be utilized for the company's growth and operational needs.From the Rs 759.6 crore being raised, Brigade Hotel Ventures plans to allocate Rs 468.14 crore towards debt repayment. An additional Rs 107.52 crore will be used to acquire a share of land from its parent entity, Brigade Enterprises. The remainder will be used for strategic acquisitions and general corporate expenses.With a strong brand portfolio, strategic backing from Brigade Enterprises, and a presence in India's key urban markets, Brigade Hotel Ventures is looking to capitalize on investor demand amid a broader revival in the hospitality and tourism sectors.Founded in 2004, Brigade Hotel Ventures began its hospitality operations in 2009 with the launch of Grand Mercure Bangalore. The company currently operates nine hotels across cities including Bengaluru, Mysuru, Chennai, Kochi, and Gujarat's GIFT City, offering a total of 1,604 rooms.The group manages properties under prominent global hospitality brands such as Marriott, Accor, and InterContinental Hotels Group (IHG), lending it credibility and international appeal.Earlier this month, the company secured Rs 126 crore through a pre-IPO placement to 360 ONE Alternates Asset Management, indicating strong institutional interest in the offering.Of the total issue size, 75% is earmarked for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors. JM Financial and ICICI Securities are acting as the book-running lead managers for the IPO.
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