Brigade Hotel Ventures Limited is a prominent owner and developer of hotels primarily located in key cities across South India, including Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and Union Territories such as Lakshadweep, Andaman and Nicobar Islands, and Pondicherry. As of March 31, 2025, the company ranks as the second largest owner of chain-affiliated hotels and hotel rooms in South India among private hotel asset owners possessing at least 500 rooms pan India.

IPO Details

Brigade Hotel Ventures has launched a Book Built Issue IPO amounting to approximately ₹759.6 crore, comprising an entirely fresh issue of 844 lakh equity shares. The IPO opens for subscription on July 24, 2025, and closes on July 28, 2025. The allotment is expected to be finalized by July 29, 2025, with a tentative listing date on or about July 31, 2025, on both BSE and NSE.

• Price Band: ₹85 to ₹90 per equity share

• Market Capitalization: ₹3,418.47 crore at the upper price band

• Lot Size: 166 shares

• Minimum Investment: Retail investors ₹14,940 (166 shares); HNIs ₹2,09,160 (14 lots or 2,324 shares)

Book Running Lead Managers and Registrar

• Lead Managers: ICICI Securities Limited, JM Financial Limited

• Registrar: KFin Technologies Limited

Subscription Status and Anchor Investors

As of 7:30 PM on July 28, 2025, the IPO was subscribed 4.48 times, reflecting a strong investor appetite. The company successfully raised ₹324.72 crore from anchor investors at the upper price band of ₹90, allotting 3,60,81,000 equity shares to them. Anchor investor participation underlines institutional confidence in the company’s prospects.

Grey Market Premium (GMP)

The Grey Market Premium for Brigade Hotel Ventures IPO is ₹0, indicating no expected listing gains. However, investors should note that GMP is unofficial and depends on unregulated demand and supply, so it should be considered cautiously.

About Brigade Hotel Ventures

Brigade Hotel Ventures operates primarily in the hospitality real estate sector as a hotel owner and developer across South India. Their portfolio includes numerous chain-affiliated hotels and rooms, making them a significant player in the region’s hospitality market.

The company benefits from a highly experienced senior management team with deep knowledge of hospitality operations, business development, and customer relations. Key directors such as Nirupa Shankar, Amar Mysore, and Vineet Verma have been instrumental in the company’s growth trajectory and operational excellence.

Financial Performance

• Revenue from operations (₹ million):

  • FY23: 3,564.10

  • FY24: 4,048.50

  • FY25: 4,706.80

• EBITDA (₹ million):

  • FY23: 1,029.80

  • FY24: 1,446.10

  • FY25: 1,668.70

• Profit After Tax (₹ million):

  • FY23: -30.90 (loss)

  • FY24: 311.40

  • FY25: 236.60

These figures show steady revenue growth and improving profitability, with EBITDA margin expansion reflecting operational efficiency.

Key Financial Metrics

• Pre-issue EPS: ₹0.72 (FY24)

• Post-issue EPS: ₹0.53 (FY24)

• Pre-issue P/E Ratio: 125x

• Post-issue P/E Ratio: 169.32x

• Industry P/E Ratio: 91x

• ROCE: 13.62%

• ROE: 30.11%

The high P/E ratio indicates the IPO is fully priced relative to the industry, with return metrics highlighting good capital efficiency and shareholder returns.

Use of IPO Proceeds

The company plans to utilise the net proceeds for:

1. Repayment or prepayment of borrowings totaling ₹4,681.40 million, including ₹4,136.90 million for the company and ₹544.50 million for its material subsidiary, SRP Prosperita Hotel Ventures Limited.

2. Payment for acquisition of undivided share of land from the promoter, Brigade Enterprises Limited, worth ₹1,075.19 million.

3. Pursuing inorganic growth through unidentified acquisitions and other strategic initiatives, as well as general corporate purposes.

Investment Outlook

Given its strong position in South India’s hospitality market, solid management experience, and consistent financial growth, Brigade Hotel Ventures presents a promising investment opportunity. However, with no Grey Market Premium and a fully priced IPO, investors seeking listing gains may want to exercise caution. Long-term investors interested in hospitality real estate growth could find value in this IPO.

How to Check Allotment Status

IPO allotment status will be available from July 29, 2025, on the registrar’s website:

• Select Brigade Hotel Ventures Limited IPO

• Enter application number, PAN, or DP Client ID

• Submit to view allotment status

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors should conduct due diligence and consult financial advisors before making investment decisions. Market risks apply.

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