Brigade Hotel Ventures sets price band at ₹85-90 for ₹760 crore IPO; issue to open on July 24

Brigade Hotel Ventures, the hotel arm of Bengaluru-based Brigade Enterprises , is set to launch its initial public offering (IPO) on July 24, which is entirely a fresh issue of equity shares with no offer-for-sale (OFS) component. The Brigade Group company has a fixed price band in the range of ₹85-90 per equity share of face value ₹10, aiming to raise ₹759.6 crore at the upper end of the issue price. 

The three-day IPO of the Southern India-based company will close on July 28, while the anchor book will open for a day on July 23. 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 three-day IPO of the South India-based company will close on July 28, while the anchor book will open for a day on July 23. 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, in its DRHP filing with the capital market regulator Securities and Exchange Board of India (Sebi), had mentioned that it would reduce the fresh issue size if it considered fundraising through a pre-IPO placement.

Earlier this month, it raised funds in a pre-IPO placement round by allotting 14 lakh shares at ₹90 per share to 360 ONE Alternates Asset Management Limited (360 ONE). The hospitality firm issued equity shares to 360 ONE across various series, representing 4.74% of the company’s pre-offer share capital, Brigade Hotel Ventures said in a public announcement on July 4.

The company filed its IPO papers with the Sebi on October 31, 2024, and received approval on February 4 of this year.

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 the undivided share of land from its promoter, Brigade Enterprises. The remaining funds 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, which 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 the financial year 2028-29.

As part of expansion plans, Brigade Hotel Ventures, a wholly-owned subsidiary of Brigade Enterprises (BEL), plans to develop five new hotels across Chennai (Tamil Nadu), Bengaluru (Karnataka), Hyderabad (Telangana), and Vaikom (Kerala). The upcoming properties are intended to be operated by global marquee hospitality brands.

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