Brigade Hotel Ventures Limited, a leading hotel developer and asset owner in South India, has completed its IPO subscription process with a moderate investor response. The IPO was subscribed 1.55 times as of 12:30 PM on July 28, 2025, the final day of the issue. However, the lack of a Grey Market Premium (GMP) and high valuation multiples has led many analysts to adopt a cautious stance on listing gains.

Company Background

Brigade Hotel Ventures operates primarily in South Indian states such as Karnataka, Tamil Nadu, Kerala, Telangana, and Andhra Pradesh, and union territories like Pondicherry, Andaman and Nicobar Islands, and Lakshadweep. The company is ranked as the second-largest owner of chain-affiliated hotel rooms in the region among major private hotel asset owners as of March 31, 2025.

The company is guided by an experienced leadership team, including Nirupa Shankar, Amar Mysore, and Vineet Verma, who bring extensive expertise in hospitality, real estate, and operations. Their deep domain knowledge has played a pivotal role in building and expanding the business.

IPO Overview

The Initial Public Offering (IPO) of Brigade Hotel Ventures is a Book Built Issue with a total issue size of ₹759.6 Crores, which consists entirely of a Fresh Issue of 844 lakh equity shares.

The price band has been fixed between ₹85 to ₹90 per share. At the upper end of the band, the market capitalisation stands at approximately ₹3,418.47 Crores.

• Lot Size: 166 shares

• Retail Minimum Investment: ₹14,940

• HNI Minimum Investment: 14 lots (2,324 shares), ₹2,09,160

Key Dates

• IPO Opening Date: July 24, 2025

• IPO Closing Date: July 28, 2025

• Allotment Date: July 29, 2025 (Tuesday)

• Tentative Listing Date: July 31, 2025 (Thursday)

• Stock Exchanges: BSE and NSE

Anchor Investment

Brigade Hotel Ventures raised ₹324.72 Crores from Anchor Investors prior to the IPO opening. The shares were issued at the upper end of the price band i.e., ₹90, and a total of 3,60,81,000 equity shares were allocated to anchor investors, showcasing moderate institutional interest.

Grey Market Premium (GMP)

As per the Grey Market data updated on July 22, 2025, the GMP of Brigade Hotel Ventures IPO stands at ₹0, indicating a neutral sentiment in the informal market. This means that no premium or discount is being paid for shares in the grey market, suggesting a flat listing is expected.

While GMP is not a regulated metric, it is often used as a speculative indicator of listing demand. A zero GMP does not indicate investor enthusiasm, especially when compared with other IPOs like GNG Electronics, which had a healthy ₹43 GMP.

IPO Subscription Status

As of 12:30 PM on July 28, 2025, the IPO has been subscribed 1.55 times, which includes participation across retail, institutional, and HNI categories.

This level of oversubscription is moderate, especially when compared to recent IPOs that witnessed 10x to 15x oversubscription. It suggests that demand was sufficient to close the issue but not overwhelmingly strong.

Financial Highlights

The financials over the past three fiscal years show steady growth in revenues and profits:

This data reflects growth in operations, although profitability slightly declined in FY25 compared to FY24.

Valuation Metrics

• Pre-issue EPS (FY24): ₹0.72

• Post-issue EPS (FY24): ₹0.53

• Pre-issue P/E Ratio: 125x

• Post-issue P/E Ratio: 169.32x

• Industry P/E Average: 91x

• ROCE (FY24): 13.62%

• ROE (FY24): 30.11%

• RoNW: 30.11%

These metrics indicate that the IPO is significantly overpriced when compared with industry averages. A P/E ratio of 169.32x is among the highest in the hospitality segment, which raises concerns about valuation sustainability.

IPO Objectives

The net proceeds from the IPO will be used for:

1. Debt Reduction:

   • ₹4,136.90 Million for Brigade Hotel Ventures

   • ₹544.50 Million for subsidiary SRP Prosperita Hotel Ventures Limited

2. Land Acquisition:
   ₹1,075.19 Million will be used to acquire an Undivided Share of Land from Promoter BEL

3. Inorganic Growth & General Corporate Purposes:
   Funds will be allocated towards future acquisitions and strategic initiatives.

Debt reduction is a positive move to improve financial health. However, the large portion going toward promoter-related land transactions raises questions on capital utilisation.

Strengths and Risks

Strengths:

• Strong regional footprint in South India

• Consistent operational revenue growth

• Experienced leadership team

• Moderate institutional anchor backing

Risks:

• High valuation (169.32x post-issue P/E)

• Zero GMP indicates low listing enthusiasm

• Profitability declined in FY25

• Competition from unlisted and listed hotel players

• Dependence on discretionary travel demand and seasonal occupancy

How to Check IPO Allotment

To check whether shares have been allotted:

1. Visit the registrar’s website — KFin Technologies Limited

2. Click on the IPO allotment link and select Brigade Hotel Ventures Limited

3. Enter your application number, PAN, or DP Client ID

4. Submit and view your allotment status

Allotment will be live on or around July 29, 2025.

Expert Opinion & Recommendation

Given the flat GMP, high valuation multiples, and limited upside in profitability, most analysts suggest avoiding the IPO for listing gains. While Brigade Hotel Ventures may offer long-term value, the fully priced IPO leaves little room for short-term returns.

Final Thoughts

The Brigade Hotel Ventures IPO reflects the ambitions of a regional hospitality giant to scale up through fresh capital infusion. Despite steady revenue growth and a diversified hotel portfolio, the IPO’s pricing appears aggressive, and listing gains look unlikely.

Investors with a long-term outlook may monitor post-listing performance, but for now, short-term investors are advised to stay cautious.

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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