Brigade Hotel Ventures IPO sees 5% drop in market debut trade

Brigade Hotel Ventures' shares ended with a 5.11% discount against the issue price of Rs 90 on their market debut, with a market valuation of Rs 3,243.86 crore. The initial public offering (IPO) was subscribed 4.48 times and raised Rs 759.6 crore. Proceeds will be used for debt repayment, land purchase, and other strategic initiatives. The company operates nine hotels across India with 1,604 keys.

On July 31, 2025, Brigade Hotel Ventures Limited (BHVL) made its market debut with a significant discount against the issue price. The shares ended at Rs 85.00, representing a 5.11% discount from the Rs 90 per share issue price. This resulted in a market valuation of Rs 3,243.86 crore, significantly lower than the expected Rs 3,418.47 crore based on the pre-IPO market capitalization.

The initial public offering (IPO) was highly subscribed, with a subscription ratio of 4.48 times, indicating strong investor interest. The IPO raised Rs 759.60 crore, which will be utilized for debt repayment, land purchase, and other strategic initiatives as outlined in the company's prospectus [1].

BHVL operates nine hotels across India, with a total of 1,604 keys. The company's hotels are operated by global marquee hospitality companies such as Marriott, Accor, and InterContinental Hotels Group. Despite the recent financial challenges, BHVL has shown signs of recovery, posting profitable workings in the financial year ending March 31, 2025 [1].

The post-IPO performance highlights the importance of thorough due diligence and market analysis for investors. While the IPO was highly subscribed, the discount against the issue price indicates that the market may have had concerns about the company's valuation or growth prospects. Investors should carefully consider these factors when evaluating future investment opportunities in the hospitality sector.

References:
[1] https://www.chittorgarh.com/ipo/brigade-hotel-ventures-ipo/2094/