Brigade Hotel Ventures, a part of the Brigade Group, is one of the major hotel owners and developers in South India. As of March 31, 2025, it is the second-largest owner of chain-affiliated hotel rooms in the region comprising Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, and Union Territories like Pondicherry and Andaman. The company’s business model is aligned with hotel development, ownership, and long-term operational partnerships with hospitality brands.

IPO Details

The Brigade Hotel Ventures IPO is a Book Built Issue of ₹759.6 Crores. It is entirely a Fresh Issue comprising 844 lakh shares. The IPO opens on July 24, 2025, and will close on July 28, 2025. The price band is fixed at ₹85 to ₹90 per equity share. The tentative listing date is July 31, 2025, and the shares will be listed on both BSE and NSE.

The IPO lot size is 166 shares, with a minimum investment of ₹14,940 for retail investors. HNIs must apply for a minimum of 14 lots (2,324 shares) amounting to ₹2,09,160.

Lead Managers and Registrar

The lead book-running managers are ICICI Securities and JM Financial, while KFin Technologies is the designated registrar.

Grey Market Premium (GMP)

As of July 25, 2025, the GMP for Brigade Hotel Ventures IPO is ₹0. There is no grey market activity, indicating no premium over the issue price. While this doesn’t necessarily reflect future listing performance, investors should note the absence of speculative interest.

IPO Subscription Status

On Day 2 (July 25, 2025), the Brigade IPO was subscribed 0.88 times. The QIB, NII, and retail investor categories are showing steady but not overwhelming interest. This may change on the last day of bidding.

Anchor Investor Portion

Brigade raised ₹324.72 Crores from Anchor Investors by allotting 3,60,81,000 equity shares at ₹90 each. This shows institutional support at the upper end of the price band.

Use of IPO Proceeds

The company intends to use the net proceeds from the IPO for the following:

1. ₹4,681.40 million to repay/prepay outstanding borrowings

   • ₹4,136.90 million for the Company

   • ₹544.50 million for SRP Prosperita Hotel Ventures Ltd (subsidiary)

2. ₹1,075.19 million for buying undivided share of land from promoter BEL

3. Remaining for inorganic growth, acquisitions, and general corporate purposes

Financial Performance

Revenue from operations:

• FY25: ₹4,706.80 million

• FY24: ₹4,048.50 million

• FY23: ₹3,564.10 million

EBITDA:

• FY25: ₹1,668.70 million

• FY24: ₹1,446.10 million

• FY23: ₹1,029.80 million

Profit After Tax (PAT):

• FY25: ₹236.60 million

• FY24: ₹311.40 million

• FY23: ₹(30.90) million

The company shows a consistent increase in revenue and EBITDA, but a slight dip in PAT in FY25 compared to FY24.

Key Ratios

• Pre-Issue EPS: ₹0.72

• Post-Issue EPS: ₹0.53

• Pre-Issue P/E: 125x

• Post-Issue P/E: 169.32x

• Industry P/E: ~91x

• ROCE: 13.62%

• ROE: 30.11%

• RoNW: 30.11%

These metrics indicate expensive valuation, which might not favor short-term investors.

IPO Allotment Guide

Investors can check the allotment status on July 29, 2025, via the KFin Technologies website. Follow these steps:

1. Go to the registrar’s allotment page

2. Select Brigade Hotel Ventures Limited IPO

3. Enter PAN/Application Number/DP Client ID

4. Click submit to view status

IPO Verdict: Should You Apply?

While Brigade Hotel Ventures is a well-established brand with solid growth, strong operational metrics, and experienced management, the IPO is fully priced. With a P/E of 169x, it trades at a significant premium to industry peers. The zero GMP suggests limited listing gains.

Investors with a long-term view may consider applying due to the stable hospitality sector outlook, especially in the South Indian premium hotel segment. However, for listing gains, it may be wise to avoid this IPO.

Conclusion

The Brigade Hotel Ventures IPO is a decent offering in terms of business fundamentals and regional leadership. Yet, valuations are stretched, and market enthusiasm is lukewarm, as seen from subscription figures and GMP.

Investors are advised to evaluate their risk appetite and consider the long-term potential rather than short-term gains.

Disclaimer: This review is for informational purposes only. It should not be construed as investment advice. Investors must consult their financial advisors before investing. Past performance is not indicative of future results. Investment in securities is subject to market risks.

The Upcoming IPOs in this week and coming weeks are M&B Engineering, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Takyon Networks, Mehul Colours, Aditya Infotech, Sri Lotus Developers & Realty, Lakshmi India Finance, Jyoti Global Plast, B.D. Industries (Pune), Kaytex Fabrics, Umiya Mobile, Repono, NSDL.

The Current active IPO are Shree Refrigerations, Sellowrap Industries, Shanti Gold International, Patel Chem Specialities, Brigade Hotel Ventures, Indiqube Spaces, GNG Electronics, TSC India.

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