The initial public offering (IPO) of Brigade Hotel Ventures kicks-off for bidding on Thursday, July 24. The company shall be offering its shares in the range of Rs 85-90 apiece, for which investors can apply for a minimum of 166 equity shares and its multiples thereafter.
Bidding for the issue concluded on Monday, July 28.
The company is looking to raise a total of Rs 759.60 crore, which is entirely a fresh share sale of 8,44,00,000 equity shares. The net proceeds from the issue shall be utilized towards repayment/prepayment of debt, payment of consideration for buying of land from the promoter Brigade Enterprises, pursuing inorganic growth and general corporate purposes.
Brigade Hotel Ventures is the owner and developer of hotels in key cities in India, primarily across South India. It owns chain-affiliated hotels and rooms in South India among major private hotel asset owners, with at least 500 rooms pan India as of March 31, 2025. Its hotels are operated by global marquee hospitality players such as Marriott, Accor and InterContinental Hotels Group.
Brigade Hotel Ventures raised Rs 324.7 crore from anchor investors as it allocated 3.6 crore equity shares at a price of Rs 90 apiece. Investors like SBI Mutual Fund, Franklin India, 360 ONE Special Opportunities Fund, Axis Mutual Fund, Motilal Oswal AMC, Bandhan Mutual Fund, Edelweiss Trusteeship, Nuvama, and Edelweiss Life Insurance Company participated in the anchor book.
Brigade Hotel Ventures reported a net profit of Rs 23.66 crore with a revenue of Rs 470.88 crore for the financial year 2024-25. The company clocked a net profit of Rs 31.14 crore with a revenue of Rs 404.85 crore for the year ended on March 31, 2024. The company shall command a market capitalization of Rs 3,418.4 crore.
Brigade Hotel has reserved shares worth Rs 7.6 crore for its employee, who will get a discount of Rs 3 per share. Shareholders of Brigade Enterprises have a reservation of Rs 30.38 crore. Of the remaining net issue, 75 per cent shares are reserved for qualified institutional bidders (QIBs), while non-institutional investors and retailers will have 15 per cent and 10 per cent allocation, respectively.
JM Financial and ICICI Securities is the book-running lead manager of the Brigade Hotel Ventures IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with Thursday, July 31 as the tentative date of listing at the bourses. Here’s what brokerage firms say about the IPO of Brigade Hotel Ventures:
Anand Rathi Shares & Stock Brokers
Rating: Subscribe for long-term
Brigade Hotel Ventures has a portfolio of strategically located, award-winning hotels that offer a diverse range of hospitality experiences across key metropolitan and emerging cities, primarily in South India. With a strong emphasis on asset ownership and operational oversight, the company has consistently demonstrated high levels of operating efficiency, said Anand Rathi.
“Its affiliation with the reputed Brigade Group provides it with the advantage of strong parentage, deep real estate expertise, and brand credibility. At the upper price band, the company is valuing at P/E of 160 times to its FY25 earnings, EV/Ebitda of 25.3 times. We believe that the IPO is fully priced and recommend a ‘subscribe for long term’ rating to the IPO,” it added.
SBI Securities
Rating: Subscribe for long-term
Brigade Hotel Ventures is one of the prominent hotel owner and developer primarily operating in South India. The company has a strong financial growth track record of 15.6 per cent, 30 per cent and 73.2 per cent CAGR in Revenue, Ebitda and PAT over FY23-25 respectively, said SBI Securities.
“The debt repayment will lead to reduction in D/E to below 1 time from 7.1 times, currently an improvement in profitability as interest cost saving of Rs 45 crore will flow through the P&L. Going forward, trends in occupancy levels and ARR of the company will be key monitorable. We recommend to ‘subscribe’ to the issue at a cut-off price for the long term,” it added.
Canara Bank Securities
Rating: Subscribe
Brigade Hotel Ventures operates in a high-entry-barrier industry with favorable demand-supply dynamics, especially in South India’s hospitality hubs. Its high occupancy, strategic alliances with global hotel chains, strong brand equity, and premium location focus enhance its long-term prospects, said Canara Bank Securities.
“The IPO is valued at a steep P/E of 125 times and P/ B of 32.26 times (FY25), well above the industry averages of 92.53 times and 4.95 times, respectively. We recommend a ‘subscribe’ rating only for well-informed investors with a long-term outlook, given its aggressive expansion, improving financial performance, and strategic advantage in high-growth hospitality corridors,” it said.
Ventura Securities
Rating: Subscribe
By combining brand-driven hospitality with real estate development expertise from its parent BEL, Brigade Hotel Ventures is positioning itself to capture demand in India’s growing premium and business hotel segments, while strengthening its balance sheet and operational footprint through this IPO, said Ventura Securities. “We recommend ‘subscribe’ to the issue,” it adds.
Kunvraji Wealth Solutions
Rating: Subscribe
“We recommend subscribing to this IPO with a medium to long term view. Its financials are growing with consistent growth in its topline numbers. With a strong presence in the southern part of India, there is further scope for geographical expansion. The Indian tourism industry is growing rapidly, driven by rising disposable incomes, and booming travel culture,” Kunvarji Wealth.