Brigade Hotel Ventures Lists at 10% Discount to IPO Price, Despite Strong Fundamentals and Parentage.

Brigade Hotel Ventures made a tepid debut on the stock exchanges, listing at Rs 81.10, a 9.89% discount to its IPO price of Rs 90. The company's lackluster performance may be attributed to muted sectoral sentiment and slowing bottom-line growth, despite a 16% YoY revenue growth in FY25. The hospitality industry's post-Covid recovery and the company's tie-up with international operators and strong parentage through Brigade Enterprises may help drive long-term investor confidence.

Brigade Hotel Ventures, a subsidiary of real estate major Brigade Enterprises, experienced a weak stock market debut today, listing below its IPO price on both the BSE and NSE. The company's shares were priced at Rs 81.10 on the BSE, a 9.89% discount from its IPO price of Rs 90, and opened at Rs 82 on the NSE, down Rs 8 or 8.89% from the issue price.

The IPO, which was subscribed 4.48 times, saw muted grey market interest, reflecting investor caution. The company offered 8.44 crore equity shares in a fully fresh issue at a fixed price of Rs 90 apiece, raising Rs 759.60 crore. Despite a post-Covid hospitality recovery and strong brand affiliations, a decline in profit after tax for FY25 may have dampened initial enthusiasm.

Brigade Hotel Ventures reported a 24% year-on-year decline in profit after tax for FY25, even as revenues grew 16% to Rs 470.7 crore. The company owns and operates nine upscale hotels across South India and GIFT City with 1,604 rooms, under renowned global brands such as Marriott, Accor, and IHG.

Despite the subdued short-term cues, the hospitality industry has seen a steady post-Covid recovery. The company’s tie-up with international operators and strong parentage through Brigade Enterprises may help drive long-term investor confidence. Shares are set to list on both the BSE and NSE, and investors and analysts will closely watch the stock’s performance on debut to gauge whether the absence of a GMP translates into a muted open — or whether fundamentals and brand strength can lift it above issue price.

References:
[1] https://m.economictimes.com/markets/stocks/news/brigade-hotel-ventures-shares-to-list-today-gmp-signals-flattish-debut/articleshow/123009010.cms