Brigade Hotel Ventures IPO Highlights
Company Overview
Brigade Hotel Ventures (BHV) is the hospitality arm of Brigade Enterprises Limited (BEL), headquartered in Bengaluru. Initiated in 2004, BHV commenced its first hotel operations in 2009.
The company has expanded to nine branded hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, managing a total of 1,604 rooms. They operate under well-established brands such as Marriott, Accor, and IHG. In FY2024, BHV achieved an average occupancy of 73.3%, significantly above the industry average of 64%, establishing a strong presence in South India's hotel industry.
Main Points
- Fully owned by BEL with a promoter holding of 100%.
- Nine operational hotels (1,604 keys) across five cities.
- Operated by large international chains: Marriott, Accor, and IHG.
- FY2024 occupancy at 73.3% compared to the 64% industry average.
- Five upcoming developments, including a Grand Hyatt in Chennai.
Brigade Hotel Ventures IPO Date
The IPO was initially sanctioned for ₹900 crore. After a pre-IPO placement of ₹126 crore, the fresh issue size is now approximately ₹774 crore. The face value per share is ₹10. The final price band will be announced by JM Financial and ICICI Securities.
| Event | Date |
|---|---|
| Issue Open | 21 July 2025 |
| Issue Close | 23 July 2025 |
| Allotment Completed | 24 July 2025 |
| Refunds Processed | 25 July 2025 |
| Listing on NSE and BSE | 28 July 2025 |
Brigade Hotel Ventures IPO Allotment
The allotment is structured with a 75:15:10 ratio for Qualified Institutional Buyers (QIBs), Non‑Institutional Investors (NIIs), and retail applicants, respectively.
Allotment Quota
- QIB quota: 75%
- NII quota: 15%
- Retail quota: 10%
Given the small retail portion, oversubscription is expected. The basis of allotment will be determined on 24 July 2025. Applicants can view their allotment status on the registrar's website (KFintech).
Brigade Hotel Ventures IPO Subscription
Early indicators suggest strong interest from institutional investors. Retail subscribers should:
- Send bids early to enhance allotment chances.
- Verify active subscription status on the registrar's website.
- Ensure ASBA (Application Supported by Blocked Amount) regulations are in place.
Brigade Hotel Ventures IPO GMP
As the IPO has not yet launched, there is no official Grey Market Premium (GMP). GMP provides a rough estimate of listing expectations but is not always reliable and does not guarantee listing day performance. Investors should focus on official issue details rather than grey market quotes.
Brigade Hotel Ventures IPO Financials
BHV has shown a significant turnaround from a loss in FY2023 to profitability in FY2024.
Financial Snapshot
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenue | ₹356.41 crore | ₹404.85 crore |
| Net Profit/(Loss) | –₹3.09 crore | ₹31.14 crore |
| PAT Margin | -0.9% | 7.7% |
| Book Value per Share | ₹1.86 | ₹2.09 |
Use of IPO Proceeds
This debt-oriented capital raise aims to strengthen the balance sheet and fuel expansion.
- Debt Reduction: ₹481 crore
- Land Acquisitions: ₹107.5 crore
- Inorganic Growth: Remaining funds
Brigade Hotel Ventures IPO Review
From an investment perspective, the IPO has both positive and negative aspects.
Strengths
- Backed by a leading real estate firm (BEL).
- Established operating history and robust brand alliances.
- Intensive use and desirable sites in growth corridors.
- Five new developments in progress, including a beach resort.
Issues
- Hospitality is cyclical; performance depends on travel demand.
- Pre-FY2024 historical losses raise questions about consistency.
- High leverage, even post-IPO, could squeeze margins.
- Limited retail quota may lead to oversubscription and low allotment.
Bottom Line
For long‑term investors seeking to access India's flourishing hotel sector, BHV offers an intriguing growth story backed by BEL's experience. However, the industry's cyclical nature and leverage make this IPO best suited for investors with a medium to long‑term holding horizon and a moderate risk appetite.
