Brigade Hotel Ventures is making an entry into the primary market tomorrow, July 25, opening the gates for public subscription. A player in the hospitality space and a subsidiary of Brigade Enterprises, the company is launching its maiden public issue. Let’s take a look at the 7 key things you should know before you consider investing.
Brigade Hotel Ventures IPO: Timeline and price band
The IPO opens on July 25 and closes on July 28. The price band has been fixed between the range of Rs 85 to Rs 90 per equity share of face value Rs 10.
Investors can bid in lots of 166 shares and in multiples thereafter. The anchor investor allocation was done on July 23.
Brigade Hotel Ventures IPO: Listing details
The equity shares of Brigade Hotel Ventures are expected to be listed on BSE and NSE on July 31. After the three days of bidding process, the basis of allotment is likely to be finalised by July 29, with refunds and share credit to demat accounts expected on the same day.
Brigade Hotel Ventures IPO: Grey Market Premium (GMP)
In the unofficial grey market, the IPO is currently trading at a premium of Rs 8, suggesting a potential listing price around Rs 98. This is approximately 9% above the issue’s upper price band.
However, investors should note that GMPs are speculative and do not guarantee listing gains.
Brigade Hotel Ventures IPO: Offer structure
The IPO is a pure fresh issue with no offer-for-sale component. Here’s how the issue is structured – 75% of the offer is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors.
In addition to this, shares worth Rs 75.96 crore are reserved for employees, and Rs 303.84 crore worth for Brigade Enterprises Ltd (BEL) shareholders.
Brigade Hotel Ventures IPO: Use of the proceeds
The company plans to utilise the Rs 703 crore it expects to raise in the following way – Rs 468.14 crore will go toward debt repayment and Rs 107.52 crore is for land acquisition from BEL.
The remaining will be used for future acquisitions, expansion, and corporate purposes.
Brigade Hotel Ventures IPO: Anchor investors
Ahead of the opening of the issue, the anchor book raised Rs 324.72 crore from notable mutual funds such as SBI MF, Axis MF, Motilal Oswal MF, Bandhan MF, Edelweiss MF, 360 One MF, and Nuvama MF.
Company Profile
Talking of the company, it is a hospitality arm of real estate developer Brigade Enterprises. It began its hotel operations in 2009 and currently manages a portfolio of nine hotels across five cities, which include Bengaluru, Chennai, Kochi, Mysuru, and GIFT City. Together, these properties account for 1,604 rooms and are operated under international brands like Marriott, Accor, and IHG.