The IPO of Brigade Hotel Ventures, which concluded recently, is set to debut on the Indian stock exchanges on Thursday, July 31. The issue received a healthy response during its bidding period between July 24 and July 28, resulting in an overall subscription of 4.76 times.
The IPO received total bids for 22.9 crore shares against 4.83 crore shares offered. The retail investors’ portion was subscribed 6.83 times, while the NII and QIB portions were booked 2.03 times and 5.74 times, respectively.
As the bidding period has ended, investor focus has now shifted to potential listing gains, typically gauged by the grey market premium (GMP). According to market sources, the company’s shares are quoting at ₹0 in the grey market, indicating that the shares might list at the same price as the issue price or at a slight discount.
The grey market premium reflects investors’ willingness to pay a premium over the IPO price. If the GMP is trading at 0 ahead of the listing, it typically suggests that the stock might have a muted debut on the exchanges.
The mainboard IPO, valued at ₹759 crore, is entirely a fresh issue of 8.44 crore shares. The company shares are to be listed on both NSE and BSE exchanges, and it 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.
The company said it will also use the funds to pay for the purchase of an undivided share of land from the promoter, pursue inorganic growth through unidentified acquisitions and other strategic initiatives, and cover general corporate purposes.
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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