Brigade Hotel Ventures IPO: Should You Bid?

Brigade Hotel Ventures is set to launch its IPO today, seeking to raise ₹759.60 crore from a fresh issue of 84.4 million equity shares. The company has raised ₹324.72 crore from anchor investors. The IPO is offered at a price band of ₹85-90 per share, and a lot size of 166 shares. The grey market premium is ₹8 or 8.89% over the upper price band. Brokerages remain optimistic on the public offering for long-term investment outlook, citing expansion and improving financial performance.

Brigade Hotel Ventures, a subsidiary of Brigade Enterprises, is set to launch its initial public offering (IPO) today, aiming to raise ₹759.60 crore through a fresh issue of 84.4 million equity shares. The IPO, which opens for subscription on Thursday, July 24, and concludes on Monday, July 28, has garnered significant interest from investors.

The IPO is priced within a range of ₹85 to ₹90 per share, with a lot size of 166 shares. The company has already raised ₹324.72 crore from anchor investors, indicating strong investor confidence. The grey market premium (GMP) for the shares is reported to be ₹8, which translates to an 8.89% premium over the upper price band. This suggests a potential listing gain, although analysts advise caution as GMPs are speculative and may not reflect actual listing outcomes [1].

Brigade Hotel Ventures operates nine hotels across five Indian cities, with a total inventory of 1,604 rooms. The company plans to use the IPO proceeds to repay debt, acquire land from its promoter, and fund strategic initiatives and general corporate purposes. The company's financial performance has shown improvement, with revenue increasing by 16.6% year-on-year to ₹468.3 crore in FY25, although profits fell by 24% to ₹23.7 crore [2].

The IPO is being managed by JM Financial and ICICI Securities, with KFin Technologies serving as the registrar. The company has reserved 75% of the issue for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 10% for retail investors. Share allotment is expected to be finalized on Tuesday, July 29, with the shares to be listed on the BSE and NSE by Thursday, July 31 [3].

Brokerages remain optimistic about the IPO, citing the company's expansion plans and improving financial performance. The domestic hotel market has expanded significantly, with the luxury segment projected to grow by 74% over the next four years, driven by a robust project pipeline [4].

References:
[1] https://www.livemint.com/market/ipo/brigade-hotel-ventures-ipo-opens-tomorrow-gmp-issue-details-10-key-things-to-know-11753261045149.html
[2] https://www.reuters.com/world/india/indias-brigade-hotel-ventures-targets-397-million-valuation-ipo-2025-07-21/
[3] https://www.business-standard.com/companies/start-ups/brigade-hotel-ventures-plans-to-launch-749-6-crore-ipo-on-july-24-125072000520_1.html
[4] https://m.economictimes.com/markets/ipos/fpos/brigade-hotel-ventures-ipo-shares-trade-at-17-gmp-ahead-of-ipo-opening-check-details/articleshow/122853010.cms