Brigade Hotel Ventures Ltd (BHV), the hospitality subsidiary of Brigade Enterprises Ltd, is all set to hit the primary market with its much-anticipated Initial Public Offering (IPO). The company has fixed its price band at ₹85–₹90 per share (face value ₹10), aiming for a valuation of approximately ₹3,419 crore (~$397 million). With investor interest already high in the grey market, BHV’s IPO is drawing significant attention ahead of its public subscription.
Brigade Hotel Ventures IPO Details: Issue Size, Dates & Structure
The BHV IPO is entirely a fresh issue—there is no offer-for-sale (OFS) component. The company plans to raise around ₹759.6 crore, with the subscription window open from July 24 to July 28, 2025. Anchor investor bidding will take place a day earlier on July 23.
Retail investors can participate in lots of 166 shares, requiring a minimum investment of ₹14,940. The allocation is structured as follows:
- 75% reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for retail investors
- Additional allocations for employees (₹75.96 crore) and existing shareholders of the parent company (₹303.84 crore).
Shares will be listed on BSE and NSE on July 31, while allotment and refunds are expected to be processed by July 29.
Company Profile & Expansion Plans
Brigade Hotel Ventures operates nine premium hotels under prestigious global hospitality brands like Marriott, IHG, and Accor, spread across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City. These hotels collectively account for 1,604 rooms.
BHV is currently the second-largest private chain-affiliated hotel owner in South India and has ambitious expansion plans. By FY 2029, the company aims to open five new hotels, including:
- A Grand Hyatt in Chennai
- A Fairfield by Marriott in Bengaluru
- A Ritz-Carlton wellness resort in Kerala
This growing portfolio underlines the company’s long-term vision to capitalize on India’s booming hospitality and tourism sector.
Use of Funds & Financial Performance
The ₹759.6 crore raised will primarily be utilized for:
- ₹468.14 crore for repaying debt (of both BHV and its subsidiaries)
- ₹107.52 crore to acquire land from the parent company, Brigade Enterprises
- The remaining amount for future acquisitions, strategic investments, and general corporate purposes
This strategic debt repayment plan is expected to bring down BHV’s net debt from ₹620 crore to around ₹120 crore, significantly improving its balance sheet and financial flexibility.
For FY 2025, BHV reported:
- Revenue: ₹468.3 crore (up 16.6% YoY)
- Net Profit: ₹23.7 crore (down 24% YoY)
Despite the profit dip, likely due to operational expansion and debt load, analysts view the top-line growth as a strong indicator of future potential.
Brigade Hotel Ventures IPO GMP Buzz & Expert Insights
In the unofficial grey market, BHV’s shares are commanding a premium of ₹17, pushing the expected listing price to around ₹107 per share, nearly 19% higher than the upper price band. This reflects high investor confidence, especially in the context of the recovering hospitality industry.
Analyst Views:
- The IPO is well-structured, with proceeds going towards meaningful debt reduction and asset acquisition
- Global brand tie-ups provide BHV a strong competitive edge, though they also pose a dependency risk—especially with Marriott-operated hotels accounting for 44% of its revenue
- The hospitality sector is on the upswing, driven by rising corporate and leisure travel, increased occupancy rates, and growing Average Room Revenue (ARR)
- Potential risks include industry competition and the recent dip in net profitability
Conclusion
Brigade Hotel Ventures’ IPO is attracting strong pre-market interest, backed by a robust operational base, strategic expansion plans, and a clear roadmap for reducing debt. While grey market indicators point toward a premium listing, long-term investors should also weigh in sectoral risks and financial fundamentals.
With a listing scheduled for July 31, 2025, and strong institutional and retail interest, this ₹759.6 crore IPO could be one of the more prominent hospitality debuts of the year. However, sustained success will depend on the company’s ability to execute expansion while improving its margins.
F.A.Q.
– What is the IPO price band for Brigade Hotel Ventures?
The IPO price band is fixed at ₹85 to ₹90 per share, with a face value of ₹10 per equity share.
– When will the Brigade Hotel Ventures IPO open and close?
The IPO will be open for public subscription from July 24 to July 28, 2025. Anchor investors can bid on July 23, 2025.
– What is the minimum investment required in the IPO?
Retail investors need to apply for a minimum of 166 shares, which amounts to an investment of ₹14,940 at the upper price band.
– What is the expected listing date and GMP of the IPO?
The shares are expected to be listed on BSE and NSE on July 31, 2025. The current Grey Market Premium (GMP) is around ₹17, indicating a possible listing price of ~₹107 per share.
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