Brigade Hotel Ventures IPO: Issued booked over 2x on day 3 so far; GMP falls sharply
Brigade Hotel Ventures is selling its shares in the price band of Rs 85-90, applied for a minimum of 166 shares and its multiples to raise a total of Rs 759.60 crore between July 24-28.
- Jul 28, 2025,
- Updated Jul 28, 2025 2:21 PM IST
The initial public offering (IPO) of Brigade Hotel Ventures continued to see a muted response during the third and final day of the bidding process from all the categories of the investors. The issue was overall booked 67 per cent on day one and ended day two with 1.2 times subscription
Bengaluru-based Brigade Hotel Ventures selling its IPO in a price range set between Rs 85 and Rs 90 per share. Investors are required to apply for a minimum of 166 shares, with the IPO aiming to raise Rs 759.60 crore through the sale of 8,44,00,000 fresh equity shares. The offering is managed by JM Financial and ICICI Securities.
According to the data, the investors made bids for 10,56,60,992 equity shares, or 2.06 times, compared to the 5,11,93,987 equity shares offered for the subscription by 2.15 pm on Monday, July 28, 2025. The three day bidding for the issue, which kicked off on Thursday, July 24, shall conclude today.
The allocation for retail investors was subscribed 5.94 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 1.59 times. Portion for employees and shareholders of Brigade Enterprises were booked 0.80 per cent and 2.53 times, respectively.. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for 99 per cent.
Brigade Hotel Ventures, a prominent hotel developer in India, focuses primarily on South Indian cities. As of March 31, 2025, the company owns over 500 rooms across the country, partnering with global hospitality giants like Marriott, Accor, and InterContinental Hotels Group. This strategic positioning highlights the company's influence in India's competitive hospitality sector.
The IPO has garnered Rs 324.7 crore from anchor investors by allocating 3.6 crore equity shares at Rs 90 each. Analysts have expressed mixed views on the offering, noting the company's strong performance in southern India and its high debt levels as points of concern.
Brigade Hotel Ventures is the owner and developer of hotels in key cities in India, primarily across South India. The company is a wholly-owned subsidiary of BEL, which is one of the leading Indian real estate developers in India, said Bajaj Broking.
"It strategically locates its hotels in areas with strong and sustained demand, influenced by factors such as population density, premium residential neighborhoods, commercial centers, and IT hubs. It prioritizes selecting specific sites within cities that offer convenient access to airports, business districts, commercial hubs, and high footfall retail zones," it said with 'subscribe for long-term' rating.
The company's recent financial performance shows a net profit of Rs 23.66 crore on a revenue of Rs 470.88 crore for the fiscal year 2024-25, a slight decline from the previous year's profit of Rs 31.14 crore on Rs 404.85 crore in revenue. With a projected market capitalisation of Rs 3,418.4 crore post-IPO, Brigade Hotel Ventures looks to strengthen its market presence.
Despite its established reputation, the IPO's grey market premium (GMP) has vanished amid market volatility, suggesting a potentially subdued listing. Initially, the premium was around Rs 17 before the price band announcement. This shift reflects investor caution and the challenging market conditions.
Going forward, trends in occupancy levels and ARR of Brigade Hotel Ventures will be key monitorable. At the upper price band of Rs 90, BHVL is valued at FY25 EV/EBITDA of 19.8 times We recommend to 'subscribe' to the issue at cut-off price for long term, said SBI Securities.
In terms of share allocation, 75 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and 10 per cent for retail investors. Additionally, employees have reserved shares worth Rs 7.6 crore at a discounted rate, while shareholders of Brigade Enterprises have allocated shares worth Rs 30.38 crore.
The initial public offering (IPO) of Brigade Hotel Ventures continued to see a muted response during the third and final day of the bidding process from all the categories of the investors. The issue was overall booked 67 per cent on day one and ended day two with 1.2 times subscription
Bengaluru-based Brigade Hotel Ventures selling its IPO in a price range set between Rs 85 and Rs 90 per share. Investors are required to apply for a minimum of 166 shares, with the IPO aiming to raise Rs 759.60 crore through the sale of 8,44,00,000 fresh equity shares. The offering is managed by JM Financial and ICICI Securities.
According to the data, the investors made bids for 10,56,60,992 equity shares, or 2.06 times, compared to the 5,11,93,987 equity shares offered for the subscription by 2.15 pm on Monday, July 28, 2025. The three day bidding for the issue, which kicked off on Thursday, July 24, shall conclude today.
The allocation for retail investors was subscribed 5.94 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 1.59 times. Portion for employees and shareholders of Brigade Enterprises were booked 0.80 per cent and 2.53 times, respectively.. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for 99 per cent.
Brigade Hotel Ventures, a prominent hotel developer in India, focuses primarily on South Indian cities. As of March 31, 2025, the company owns over 500 rooms across the country, partnering with global hospitality giants like Marriott, Accor, and InterContinental Hotels Group. This strategic positioning highlights the company's influence in India's competitive hospitality sector.
The IPO has garnered Rs 324.7 crore from anchor investors by allocating 3.6 crore equity shares at Rs 90 each. Analysts have expressed mixed views on the offering, noting the company's strong performance in southern India and its high debt levels as points of concern.
Brigade Hotel Ventures is the owner and developer of hotels in key cities in India, primarily across South India. The company is a wholly-owned subsidiary of BEL, which is one of the leading Indian real estate developers in India, said Bajaj Broking.
"It strategically locates its hotels in areas with strong and sustained demand, influenced by factors such as population density, premium residential neighborhoods, commercial centers, and IT hubs. It prioritizes selecting specific sites within cities that offer convenient access to airports, business districts, commercial hubs, and high footfall retail zones," it said with 'subscribe for long-term' rating.
The company's recent financial performance shows a net profit of Rs 23.66 crore on a revenue of Rs 470.88 crore for the fiscal year 2024-25, a slight decline from the previous year's profit of Rs 31.14 crore on Rs 404.85 crore in revenue. With a projected market capitalisation of Rs 3,418.4 crore post-IPO, Brigade Hotel Ventures looks to strengthen its market presence.
Despite its established reputation, the IPO's grey market premium (GMP) has vanished amid market volatility, suggesting a potentially subdued listing. Initially, the premium was around Rs 17 before the price band announcement. This shift reflects investor caution and the challenging market conditions.
Going forward, trends in occupancy levels and ARR of Brigade Hotel Ventures will be key monitorable. At the upper price band of Rs 90, BHVL is valued at FY25 EV/EBITDA of 19.8 times We recommend to 'subscribe' to the issue at cut-off price for long term, said SBI Securities.
In terms of share allocation, 75 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and 10 per cent for retail investors. Additionally, employees have reserved shares worth Rs 7.6 crore at a discounted rate, while shareholders of Brigade Enterprises have allocated shares worth Rs 30.38 crore.