Pre-IPO fundraising: Brigade Hotel Ventures garners ₹126 cr from 360 ONE

Brigade Hotel Ventures, a wholly-owned subsidiary of Brigade Enterprises (BEL), has raised ₹126 crore through a pre-IPO placement round ahead of its proposed public offering. The company has allotted 14 lakh shares at ₹90 per share to 360 ONE Alternates Asset Management Limited (360 ONE).

The South India-based hospitality firm issued equity shares to 360 ONE across various series, amounting to ₹126 crore, representing 4.74% of the company’s pre-offer share capital, Brigade Hotel Ventures said in a public announcement on July 4.

With this fundraising, the size of the company’s IPO will reduce to ₹774 crore. Brigade Hotel Ventures, in its draft red herring prospectus (DRHP) filing with the capital markets regulator, the Securities and Exchange Board of India (Sebi), had mentioned that it would cut its fresh issue size if it raises funds through a pre-IPO placement.

Fresh issue size cut to ₹774 crore

According to the DRHP, the Brigade Hotel IPO is entirely a fresh issue of equity shares with a face value of ₹10 each, amounting to ₹900 crore. This has now been reduced to ₹774 crore.

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

The company intends to use the IPO proceeds for debt repayment, land acquisition, and business expansion. The fund will be mainly used to repay debt (₹481 crore), while ₹107.5 crore will be utilised for acquiring an 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.

Focuses on expanding hospitality portfolio

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 FY29.

As part of its expansion plans, Brigade Hotel Ventures (BHVL) 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.

The company, a prominent owner and developer of hotels primarily in South India, proposes to develop three luxury hotels, including the Intercontinental Hyderabad at Brigade Neopolis, the Grand Hyatt Resort on East Coast Road (ECR) in Chennai, and another luxury resort in Vaikom Island, Kerala.

BHVL has entered into a non-binding term sheet with Hyatt in India to develop the resort in Chennai under the “Grand Hyatt” brand, with both parties yet to finalise the definitive management agreement. Additionally, it plans to expand its presence in the upper midscale segment by intending to develop two branded hotels: one near the Bengaluru Airport and another in Hosur, Karnataka. These hotels will operate under the ‘Fairfield by Marriott’ brand, following a non-binding memorandum of understanding (MoU) signed between BHVL and Marriott India Private Limited. The terms of this MoU are subject to approval by Marriott’s board of directors and the signing of a definitive contract.

The company aims to complete the construction of the luxury beach resort in Chennai and the two upper midscale hotels in Bengaluru by FY28, with the remaining two hotels slated to be completed by 2029. BHVL’s expansion strategy focusses on high-growth regions with demand, in line with its long-term strategic objectives.

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