Brigade Hotel Ventures Ltd, a prominent hotel owner and developer in South India, has set a price band of ₹85-90 per share for its upcoming Initial Public Offering (IPO) worth ₹749.6 crore.
At the top end of this price band, the company’s valuation stands at over ₹3,400 crore. The IPO will open for subscription from July 24 to July 28, with the bidding for anchor investors commencing on July 23, as announced by the company.
The IPO will consist entirely of a fresh issue of equity shares, with no Offer for Sale (OFS) component.
The company will use ₹468.14 crore from the IPO proceeds to repay debt, while it will allocate ₹107.52 crore to purchase an undivided share of land from its promoter, BEL. Additionally, it will deploy the remaining funds towards acquisitions, strategic initiatives, and general corporate purposes.
Earlier this month, Brigade Hotel Ventures secured ₹126 crore by issuing equity shares to 360 ONE Alternates Asset Management.
The company is a subsidiary of Bengaluru-based real estate major Brigade Enterprises Ltd (BEL). BEL ventured into the hospitality sector in 2004, with its first project, Grand Mercure Bangalore, which began operations in 2009.
Brigade Hotel Ventures operates a portfolio of nine hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City (Gujarat), offering a total of 1,604 keys. Leading global hospitality brands, including Marriott, Accor, and InterContinental Hotels Group (IHG), manage these properties.
For its IPO, the company has allocated 75% of the issue to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to retail investors. JM Financial and ICICI Securities serve as the book-running lead managers, and the company expects to list its shares on the stock exchanges on July 31.
