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Mint
5 days ago
- Business
- Mint
Brigade Hotel Ventures IPO: This small fish knows how to hunt in a big pond
After a muted start to 2025, India's IPO party is back in full swing. The stellar ₹12,500-crore offering of HDB Financial Services — the largest IPO of the year so far — has boosted investors' confidence and reignited their appetite for public issues. With more than $30 billion expected to be raised in the next 12 months, India's IPO pipeline is bursting with high-value deals and strong institutional interest. This week, Dalal Street will see 10 IPOs ready for launch and three companies gearing up to list. Among the most anticipated offerings is that of Brigade Hotel Ventures. Here's all you need to know about the IPO. What is Brigade Hotel Ventures? Brigade Hotel Ventures Ltd develops and owns hotels in cities, primarily across south India. The company is a wholly owned subsidiary of Brigade Enterprises Ltd, a leading Indian real estate developer. The company owns chain-affiliated hotels and rooms in Kerala, Andhra Pradesh, Tamil Nadu, Karnataka and Telangana, as well as the Union Territories of Lakshadweep, Andaman and Nicobar Islands, and Pondicherry. Its hotels provide a comprehensive experience, including fine dining and specialty restaurants, venues for meetings, incentives, conferences, and exhibitions (the 'MICE' market), lounges, swimming pools, outdoor spaces, spas and gymnasiums. Brigade Enterprises Limited (BEL), ventured into hospitality in 2004 by launching Grand Mercure Bangalore, which began operations in 2009. What sets this IPO apart? How is the IPO structured? The IPO offering consists solely of new equity shares with no offer-for-sale (OFS) component. How does Brigade Hotel Ventures plan to use the proceeds? What's the grey market premium? As of 22 July the grey market premium (GMP) for Brigade Hotel Ventures stood at ₹17, implying a listing price of ₹107, an 18.9% premium to the issue's upper band. The GMP has been trending upward in recent sessions, signalling expectations of a firm listing. Brigade Hotel Ventures vs its peers Brigade Hotel Ventures is a relatively small player in the hospitality space, with revenue of ₹401.7 crore, far lower than that of giants such as Indian Hotels (Taj) and EIH (Oberoi). However, has an exceptionally high return on net worth (RoNW) of 53.01%, significantly higher than all its listed peers, indicating strong capital efficiency. Its basic earnings per share (EPS) of ₹0.88 is modest but positive, unlike that of loss-making players such as Samhi Hotels. While its net worth of ₹58.74 crore is the lowest in the group, the company benefits from brand partnerships with global hospitality majors such as Marriott and Accor. What are the financials like? Revenue grew steadily from ₹840.67 crore in FY23 to ₹947.57 crore in FY25, while Ebitda rose from ₹113.98 crore to ₹166.87 crore. After a loss in FY23, the company turned profitable in FY24 with a profit after tax (PAT) of ₹31.14 crore. PAT came in at ₹23.66 crore in FY25. Net worth also improved significantly to ₹78.58 crore in FY25. Over the past three years, the company has delivered a revenue CAGR of 6.2%. What are the risks? What's next for Brigade Hotel Ventures? The company's expansion strategy focuses on high-growth regions with demand, in line with its long-term strategic objectives. It plans to develop three luxury properties, including the Intercontinental Hyderabad at Brigade Neopolis, the Grand Hyatt Resort on East Coast Road (ECR) in Chennai, and a luxury resort at Vaikom Island, Kerala. It also aims to complete the construction of a luxury beach resort in Chennai and the two upper-midscale hotels in Bengaluru FY28, and another two hotels by FY29. Conclusion The India's hotel industry is entering an exciting phase. With more people travelling for leisure, religious tourism, and business, over one lakh new rooms are expected to be added by 2029. From improved infrastructure to rising incomes, everything's pointing to one thing: a travel boom that's here to stay. For Brigade Hotel Ventures, this comes at just the right time. With a presence in major cities and growing destinations such as Mysuru and GIFT City, it's already where the action is shifting. Happy investing! Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Bloomberg
7 days ago
- Business
- Bloomberg
Tata Capital Is Said to Seek Much Higher IPO Valuation Target
Tata Capital Ltd. is seeking a valuation of $18 billion to $20 billion in its planned initial public offering and could file an updated draft red herring prospectus as soon as this week, people familiar with the matter said. The valuation is much higher than an earlier target of about $11 billion, with the Tata Group unit buoyed by a recent rights issue and the success of other IPOs in India, including by fellow shadow lender, HDB Financial Services Ltd., the people said. HDB attracted strong demand and raised about $1.5 billion.
Yahoo
22-07-2025
- Business
- Yahoo
Top Arranger Says India IPOs to Raise $30 Billion Over 12 Months
(Bloomberg) -- The boom in Indian initial public offerings is expected to continue, with companies poised to raise over $30 billion in the next 12 months, according to Kotak Mahindra Capital Co. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom How San Jose's Mayor Is Working to Build an AI Capital Around 150 firms are planning to tap the equity market, V Jayasankar, head of investment banking at Kotak, the country's top arranger for equity deals this year, said in an interview. 'The pace of IPO filings is robust, and it reflects the deepening confidence of issuers in India's capital markets,' he said. India's IPO market had a slow start to the year after companies raised a record $21 billion in 2024. But activity has picked up in recent months. A number of billion-dollar deals are on their way, with this month's solid debut by HDB Financial Services Ltd. also boosting sentiment. The shadow lender's $1.5 billion IPO was India's biggest in 2025. Overall IPO proceeds for this year stand at $7 billion, and Jefferies Financial Group expects up to $18 billion to be raised in the second half. 'It's a reflection of our large, fast-growing economy,' Jayasankar said. 'Even if GDP isn't expanding at 8%, a 6%-plus growth rate still creates significant opportunities for businesses,' he said. Among firms gearing up to enter the market, Tata Capital Ltd. is planning to raise about $2 billion. The Indian unit of South Korea's LG Electronics Inc. is also looking to raise as much as $1.7 billion. While Jayasankar counted India's resilience to external geopolitical uncertainties as well as political stability among factors that should continue to underpin the bullish market sentiment, he also highlighted potential headwinds. A weak secondary market, declining domestic inflows, or a shift in foreign investor interest toward more attractively valued markets like China could challenge the IPO momentum, he said. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hans India
20-07-2025
- Business
- Hans India
IPO market outlook for H2 2025 remains cautiously optimistic amid improving economic conditions
Mumbai: The outlook for India's initial public offering (IPO) market in the second half of 2025 remains cautiously optimistic, experts said on Sunday. Ratiraj Tibrewal, CEO of Choice Capital Advisors, believes that economic conditions are likely to improve in the coming months as global and domestic challenges such as inflation, interest rates, geopolitical tensions, and currency volatility begin to ease. This positive outlook follows a strong performance in the first half of 2025, when companies raised Rs 45,351 crore through IPOs despite ongoing global trade tensions and macroeconomic concerns. The amount raised represents a 45 per cent jump compared to Rs 31,281 crore collected during the same period the previous year. Interestingly, while the funds raised increased, the number of IPOs fell to 24 in January–June 2025 from 36 in the same period the previous year. This suggests that companies are opting for larger issue sizes, supported by strong investor demand. According to data shared by merchant bankers, nearly 67 per cent of the IPOs listed in the first half of the year debuted at a premium, with an average return of around 25 per cent for investors. Big names such as HDB Financial Services, Hexaware Technologies, Schloss Bangalore, and Ather Energy hit the market during this period. Most of these public issues included a mix of fresh equity and offers for sale, with funds being used for expansion, debt repayment, and working capital. The period also saw a spike in companies preparing to go public. The Securities and Exchange Board of India (SEBI) received draft IPO papers from 118 companies, more than double the 52 filings in the same period the previous year. This indicates strong future activity in the market. JM Financial emerged as the leader in the IPO space, managing 10 issues that collectively raised Rs 26,838 crore in the first quarter of FY26 alone, according to Prime Database. Vinod Nair, Head of Research at Geojit Financial Services, said that improving earnings in Q1 and Q2 of FY26, along with progress on the India-US trade deal, could further boost market sentiment. However, he also warned that the high base of Rs 1.3 lakh crore raised in the second half of 2024 may make year-on-year (YoY) comparisons more challenging, especially if there is a slowdown in foreign and retail investor inflows.
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Business Standard
19-07-2025
- Business
- Business Standard
HDFC Bank Q1 results: Net profit up 12.2% Y-o-Y to Rs 18,155 crore
HDFC Bank, India's largest private sector lender, has reported a 12.2 per cent year-on-year (Y-o-Y) increase in net profit to Rs 18,155 crore in the April-June quarter of the financial year 2025-26 (Q1FY26), despite a significant jump in provisions in the quarter, and modest growth in net interest income (NII) due to subdued loan growth. The bank's partial disinvestment in subsidiary HDB Financial Services during the quarter aided to the net profit. It received a net gain of Rs 6,949.27 crore on account of the sale of shares of HDB Financial. Its provisions jumped to Rs 14,441 crore in the quarter, which includes Rs 9,000 crore of floating provisions, and Rs 1,700 crore of additional contingent provisions. 'The bank's credit performance across all segments continues to remain steady, in a credit environment that remains benign. The bank has considered this as an opportune stage to enhance its floating provisions, which are not specific to any portfolio, nor meant for any specific anticipated risks, but act as a countercyclical buffer for making the balance sheet more resilient', the lender said in its statement on Saturday. The lender's NII during the period grew 5.4 per cent Y-o-Y to Rs 31,438 crore, while core net interest margin stood at 3.35 per cent on total assets, reflecting assets repricing faster than deposits, as against 3.46 per cent for the prior quarter ended March 31, 2025. Meanwhile, its end of period deposits stood at Rs 27.64 trillion, up 16.2 per cent Y-o-Y, with CASA deposits growing at 8.5 per cent, and time deposits growing at 20.6 per cent over the corresponding quarter of the previous year. The bank's board also approved issuance of bonus shares in the proportion of 1:1 i.e. one bonus equity share of Re 1 each for every one fully paid-up equity share held as on the record date, subject to statutory and regulatory approvals as applicable, and approval of shareholders of the bank to be obtained by way of postal ballot.
