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Brigade Hotel Ventures Ltd, a subsidiary of Brigade Enterprises Ltd, raised INR 325 crore from 17 anchor investors just before its IPO opened for public subscription. The price band for the IPO has been set between INR 85 and INR 90 per share, with the offering expected to raise INR 759.6 crore entirely through a fresh issue. The proceeds will primarily be used to reduce debt, purchase land from the parent company, and fund strategic growth. The company operates nine hotels across South India and GIFT City under brands like Marriott, Accor, and IHG.
Brigade Hotel Ventures Ltd, the hospitality arm of Bengaluru-headquartered Brigade Enterprises Ltd, secured INR 325 crore from a robust list of anchor investors in the lead-up to its IPO. The capital was raised through an allotment of over 3.6 crore equity shares at INR 90 per share, drawing interest from 17 institutional funds, including SBI Mutual Fund, Axis Mutual Fund, Motilal Oswal MF, Bandhan MF, Edelweiss MF, 360 One MF, and Nuvama MF, as per a filing on the Bombay Stock Exchange. Advertisement
The IPO, which opened for public subscription during the past week, carries a price band of INR 85-90 per share, placing the company's valuation at the upper end at over INR 3,400 crore. The entire INR 759.6 crore offering is a fresh issue, with no offer-for-sale component.
A significant chunk of the IPO proceeds approximately INR 468.14 crore has been earmarked to pare down existing debt, while INR 107.52 crore will go towards purchasing an undivided share of land from the promoter company, Brigade Enterprises Ltd. The balance capital is slated for acquisitions, strategic growth, and general corporate purposes.
Just weeks before this anchor round, the company had also raised INR 126 crore via a private placement to 360 ONE Alternates Asset Management, signaling growing institutional confidence in the hospitality firm.
Brigade Hotel Ventures, which formally entered the hotel space in 2004, launched its first operational property, Grand Mercure Bangalore, in 2009. It now boasts a portfolio of nine operational properties located in major cities such as Bengaluru, Chennai, Kochi, Mysuru, and the upcoming financial hub GIFT City. Together, these properties comprise 1,604 keys and are operated under premium global hospitality brands like Marriott, Accor, and InterContinental Hotels Group.
In terms of IPO allocation, 75% of the issue has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. JM Financial and ICICI Securities are acting as the book-running lead managers for the issue.
The shares of Brigade Hotel Ventures are scheduled to debut on the stock exchanges in the upcoming week.
Source PTI
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