Brigade Hotel Ventures IPO to open on July 24; GMP hints at 18% premium
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Brigade Hotel Ventures, the hospitality arm of real estate major Brigade Enterprises , is set to open its initial public offering (IPO) for subscription on Thursday, July 24. The company has fixed a price band of Rs 85–90 per share, with the entire issue comprising a fresh offer worth Rs 759.6 crore.In the grey market, Brigade Hotel Ventures' shares are trading at a premium of Rs 16–17, suggesting a potential listing gain of around 18% over the upper end of the price band. However, analysts caution that grey market premiums (GMPs) are speculative and may not always reflect actual listing performance.Also Read: Paytm stock rallies 122% in one year but still 53% below issue price. Can it reclaim its IPO glory? The IPO will remain open till July 28, with investors allowed to bid for a minimum of 166 shares and in multiples thereafter. The share allotment is expected to be finalised on July 29, and the listing is tentatively scheduled for July 31 on both the BSE and NSE.At the upper price band, the company would be valued at over Rs 3,400 crore. The issue does not include an Offer for Sale (OFS), meaning the entire proceeds will go towards funding the company's expansion plans.Also Read: 7 Nifty500 stocks with highest dividend yields. Do you own any? Of the Rs 759.6 crore being raised, Brigade Hotel Ventures plans to use Rs 468.14 crore to repay debt. Another Rs 107.52 crore will go towards acquiring an undivided share of land from its parent company, Brigade Enterprises. The rest will be allocated for strategic acquisitions and general corporate purposes.Also Read: Apollo Tyres, Brigade Enterprises among 10 small-cap stocks trading below industry PE; may rally up to 43% Established in 2004, Brigade Hotel Ventures entered the hospitality space with its first property—Grand Mercure Bangalore—in 2009. The company currently operates nine hotels across cities such as Bengaluru, Mysuru, Chennai, Kochi, and GIFT City in Gujarat, with a total inventory of 1,604 keys.It manages properties under well-known international hospitality brands like Marriott, Accor, and InterContinental Hotels Group (IHG), enhancing its operational credibility.Earlier this month, the company raised Rs 126 crore in a pre-IPO placement from 360 ONE Alternates Asset Management, signalling strong institutional interest ahead of the public issue.The IPO will reserve 75% of the offer for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors. JM Financial and ICICI Securities are acting as the book-running lead managers for the issue.With a growing footprint in India's urban hospitality sector, backing from a strong parent, and partnerships with global hotel chains, Brigade Hotel Ventures aims to tap into investor appetite amid a steady recovery in travel and tourism demand.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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