Brigade Hotel raises ₹325 crore from 17 anchor investors; IPO opens today

Ahead of the opening of its initial public offering (IPO) on Thursday, Brigade Hotel Ventures, a subsidiary of Brigade Enterprises Ltd (BEL), has raised ₹325 crore from 17 anchor investors. The company, which is engaged in hotel ownership and real estate development across South India, has allotted 3.6 crore equity shares to anchor investors at the upper end of the price band, fixed at ₹90 per equity share, with a face value of ₹10 each.

Out of the total allocation, 2.55 crore equity shares, or 70.64% of the anchor book, were allocated to 6 domestic mutual funds through a total of 12 schemes. The anchor book saw participation from a wide variety of marquee investors, including SBI Mutual Fund, Franklin India Mutual Fund, 360 One Mutual Fund, Axis Mutual Fund, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Edelweiss Mutual Fund, Nuvama Mutual Fund, and others.

The Bengaluru-based company looks to raise ₹760 crore via IPO, which is entirely a fresh issue of equity shares with no offer-for-sale (OFS) component. The Brigade Group company has fixed price band in the range of ₹85-90 per equity share of the face value of ₹10. 

The Brigade Hotel IPO share allotment is expected to be finalised on July 29, while shares are set to commence trading on the BSE and NSE on July 31.

The company has reduced the issue size from ₹900 crore, as proposed in the draft red herring prospectus (DRHP), after raising ₹126 crore through a pre-IPO placement round.

The company filed its IPO papers with the Sebi on October 31, 2024, for which it received approval on February 04, 2025.

The company intends to use IPO proceed for debt repayment, land acquisition, and business expansion. The company will use ₹481 crore to repay debt, while ₹107.5 crore will be utilised for acquiring undivided share of land from its promoter, Brigade Enterprises. The remaining fund will be used for inorganic growth opportunities and other general corporate purposes.

Brigade Enterprises forayed into the hotel business in 2004. Currently, it has a portfolio of nine operating hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, with a total of 1,604 keys. These hotels are operated by major hotel brands like Marriott, Accor, and InterContinental Hotels Group.

The company is looking to expand its hospitality portfolio, solidifying its position as a leading hotel owner and developer in South India. The hospitality giant, that operates several brands, including Four Points by Sheraton, Grand Mercure, Holiday Inn, and Ibis Styles, plans to invest in new hotel developments to close the gap with rivals amid a booming domestic travel market. The company aims to increase its inventory to 2,600 keys by financial year 2028-29.

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