Brigade Hotel Ventures Limited, a leading company in the hospitality sector, launched its Initial Public Offering (IPO) for subscription on July 24, 2025. The company aims to raise a total of ₹759.60 crore through this issue. The entire issue is presented as a fresh issue, with a total of 8.44 crore new equity shares being issued. The issue will close on July 28, with the potential share listing expected on July 31.
Price Band and Lot Size
Brigade Hotel Ventures has fixed the price band of its IPO at ₹85 to ₹90 per share. Investors can bid for a minimum of one lot, which is 166 shares. This means that retail investors will have to invest a minimum of ₹14,940. A retail investor can apply for a maximum of 13 lots, i.e., 2,158 shares, which would amount to ₹1.94 lakh.
Confidence Already Gained from Anchor Investors
A day before the IPO opened, on July 23, the company had already raised ₹324.72 crore from anchor investors. This anchor book included major domestic mutual fund houses such as SBI MF, Axis MF, Motilal Oswal MF, Bandhan MF, Edelweiss MF, Nuwama MF, and 360 One MF. This has sent positive signals to the market regarding the company.
Excellent Response Seen in the Grey Market
Even before the IPO opened, Brigade Hotel Ventures shares were showing b performance in the grey market. According to sources, its unlisted shares were trading at ₹98 in the grey market. This is approximately 8.89% higher than the company's upper price band (₹90), indicating enthusiasm among investors for this issue.
Possible Dates for Share Allotment and Listing
The last date for IPO subscription is July 28. After this, the share allotment may be finalized on July 29. The shares will be transferred to the demat accounts of investors who are allotted shares on July 30. Meanwhile, the company's shares could be listed on the BSE and NSE on July 31.
Lead Managers and Registrar
JM Financial Limited and ICICI Securities Limited are managing this public issue, while KFin Technologies Limited has been appointed as the registrar of this issue. The entire IPO process will be completed under their supervision.
How Has the Company's Financial Performance Been?
Brigade Hotel Ventures Limited is a subsidiary of Brigade Enterprises Limited, which is considered a well-known company in the real estate sector. Brigade Hotel Ventures is active in the field of hotel development and management, and its hotels are mainly located in cities in South India.
Talking about financial performance, the company incurred a loss of ₹3.09 crore on revenue of ₹356.41 crore in FY 2022-23. After this, in 2023-24, the company earned a profit of ₹31.13 crore on revenue of ₹404.85 crore. According to the latest figures, the company's total revenue in 2024-25 was ₹470.68 crore, with a net profit of ₹23.66 crore.
What Brokerage Houses Say
Analysts at Canara Bank Securities have recommended subscribing to this IPO from a long-term perspective. They believe that the company's hotel properties are located in premium locations and have strategic partnerships with global hotel brands. In addition, high occupancy rates and brand value give it a competitive edge.
However, the brokerage has also clarified that the company's valuation is high, and in such a situation, investment should be made only by those investors who have a long-term perspective and have a detailed understanding of the hospitality sector.
What the Company's Valuation and Returns Indicate
The company's average Return on Net Worth (RoNW) is 30.11%. In addition, the company's EV/EBITDA ratio was 4.56x in FY 2023-24 and 4.17x in 2024-25. However, its P/E ratio is 125x, which is higher than the industry average of 92.53x. The P/B ratio is also 32.26x, while the industry average is only 4.95x.
Company's Presence and Expansion
Brigade Hotel Ventures' portfolio includes major brands such as Holiday Inn, Sheraton Grand, Holiday Inn Express, and Grand Mercure, among other international hotel brands. The company has a presence in cities like Bengaluru, Mysore, Chennai, Kochi, and Coimbatore, where hospitality demand is constantly increasing.
The company's focus is on high-growth corridors and Tier-1 cities, which makes its expansion prospects look b. The company says that the funds received from this IPO will be used to repay debt and for the development of new hotel properties.
