The initial public offering (IPO) of Brigade Hotel Ventures received a healthy response on its first day of bidding, with investors placing bids for 3.21 crore shares against the total offer of 4.83 crore shares, resulting in an overall subscription of 0.67 times by the end of Day 1, according to exchange data.
Retail investors showed strong interest, with their portion subscribed 2.66 times, while the non-institutional investors’ portion was booked 0.45 times. The QIB (Qualified Institutional Buyers) portion was subscribed just 0.08 times.
Brigade Hotel Ventures aims to raise ₹759.60 crore through the IPO, which is entirely a fresh issue of 8.44 crore shares. The IPO lot size is fixed at 166 shares, requiring a minimum investment of ₹14,940 for retail investors.
The price band for the issue is set between ₹85 and ₹90 per share. The allotment for the IPO is expected to be finalized on Tuesday, July 29, 2025, and the shares are scheduled to list on both the NSE and BSE, with a tentative listing date of Thursday, July 31. JM Financial Limited is the book-running lead manager to the issue, while Kfin Technologies Limited is acting as the registrar.
The company proposed to utilize the proceeds from the IPO for repayment or prepayment, in full or in part, of certain outstanding borrowings availed by the company and its material subsidiary, SRP Prosperita Hotel Ventures Limited. It will also use the funds for payment of consideration for the purchase of an undivided share of land from the promoter, pursue inorganic growth through unidentified acquisitions and other strategic initiatives, and for general corporate purposes.
GMP signals 10% premium
As of today, the grey market premium (GMP) for Brigade Hotel Ventures’ IPO stands at ₹9 per share. This suggests that the shares are anticipated to list at ₹9 above their issue price. With this GMP and the IPO’s upper price band, the estimated listing price of the shares would be ₹99, reflecting a 10% premium.
The grey market premium represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to remember that GMP is a preliminary indicator and should not be the sole factor in making investment decisions.
About Brigade Hotel Ventures
Brigade Hotel Ventures Limited is the owner and developer of hotels in key cities in India, primarily across South India. The company is a wholly owned subsidiary of BEL, which is one of the leading Indian real estate developers in India.
The company owns chain-affiliated hotels and rooms in South India (comprising the states of Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, and Telangana and the Union territories of Lakshadweep, Andaman and Nicobar Islands, and Pondicherry) among major private hotel asset owners (i.e., owning at least 500 rooms pan India) as of March 31, 2025.
The hotels provide a comprehensive customer experience, including fine dining and specialty restaurants, venues for meetings, incentives, conferences, and exhibitions (“MICE”), lounges, swimming pools, outdoor spaces, spas, and gymnasiums.
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