Brigade Hotel Ventures sets price band for ₹760cr IPO
What's the story
Brigade Hotel Ventures Ltd., an owner and developer of hotels in South India, has announced the price band for its initial public offering (IPO). The company plans to raise ₹759.60 crore through the IPO, which will be priced between ₹85 and ₹90 per share. Investors can bid for a minimum of 166 shares and in multiples thereof.
Timeline
IPO to open on July 24
The subscription period for Brigade Hotel Ventures's IPO will commence on July 24 and conclude on July 28. However, the one-day bidding for anchor investors will open a day earlier, on July 23. The company's shares are likely to be listed on the stock exchanges by July 31. JM Financial and ICICI Securities are managing the issue, while Kfin Technologies serves as the registrar.
Fund allocation
Fresh issue of equity shares
Brigade Hotel Ventures's IPO is a fresh issue of equity shares without any offer-for-sale (OFS) component. Of the total issue proceeds, ₹468.14 crore will be used to repay debt, while ₹107.52 crore will go toward purchasing undivided share of land from the promoter, Brigade Enterprises Ltd (BEL). The remaining funds will be used for acquisitions, strategic initiatives, and general corporate purposes. Earlier this month, Brigade Hotel Ventures raised ₹126 crore by selling equity shares to 360 ONE Alternates Asset Management.
Business overview
Parent company of Brigade Hotel Ventures
Brigade Hotel Ventures, a subsidiary of Bengaluru-based real estate firm BEL, has nine operational hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City. These properties are managed by global hospitality giants like Marriott, Accor, and InterContinental Hotels Group. However, the company's profit for FY23 fell 24% to ₹23.7 crore from ₹31.14 crore in the previous fiscal year despite a 16.6% rise in revenue to ₹468.3 crore from ₹401.7 crore during the same period.