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Brigade Hotel Ventures Ltd made its stock market debut with a near 10% discount against its issue price of INR 90, despite strong investor demand during its IPO, which was subscribed 4.48 times. The shares opened at INR 82 on BSE and INR 81.10 on NSE, pulling the company's market valuation to around INR 3,279.94 crore. The IPO, an entirely fresh issue worth INR 759.6 crore, aims to fund debt repayment, land acquisition from parent firm BEL, and strategic initiatives. The firm operates nine hotels across major Indian cities in partnership with international hotel chains.
Shares of Brigade Hotel Ventures Ltd, a subsidiary of Brigade Enterprises Ltd (BEL), began trading with a weaker-than-expected start on the exchanges this past week. Despite a healthy response to its initial public offering, the stock debuted at INR 82 on the Bombay Stock Exchange, reflecting a discount of 8.88% against the IPO price of INR 90. On the National Stock Exchange, it opened even lower at INR 81.10, marking a 9.88% drop. Advertisement
The tepid listing performance comes as a surprise considering the IPO was subscribed 4.48 times by the close of the bidding window. The IPO was a pure fresh issue worth INR 759.6 crore, with no offer-for-sale component involved. The company set the price band between INR 85 and INR 90 per share.
Following the listing, Brigade Hotel Ventures' market capitalisation stood at approximately INR 3,279.94 crore. A significant chunk of the IPO proceeds around INR 468.14 crore will be allocated toward debt repayment. Another INR 107.52 crore will go toward purchasing an undivided share of land from its promoter company, BEL. The rest of the funds will support acquisitions, other strategic expansions, and general corporate requirements.
Headquartered in Bengaluru, Brigade Enterprises forayed into the hospitality sector in 2004. Its first hotel project, Grand Mercure Bangalore, began operations in 2009. Since then, the group has built a diversified portfolio, and as of now, Brigade Hotel Ventures operates nine hotels with 1,604 keys spread across Bengaluru, Mysuru, Chennai, Kochi, and GIFT City in Gujarat.
The hospitality assets are managed by globally renowned hotel chains including Marriott International, Accor, and InterContinental Hotels Group (IHG), enhancing the company's operational credibility and brand strength. This multi-city presence positions Brigade Hotel Ventures among India's prominent hotel asset owners with a focus on upscale and upper midscale segments.
Source PTI
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