The IPO of Brigade Hotel Ventures is set to close today, July 28, marking the final day of its three-day bidding window. The issue opened on July 24 and has drawn decent participation, especially from retail investors. As the subscription nears its end, key factors such as grey market trends, category-wise demand, and the company’s fund utilisation plan are in focus. Let’s take a look at each –
Brigade Hotel Ventures IPO: GMP stays flat as listing premium narrows
The grey market premium (GMP), which had shown early signs of interest, has now stabilised.
Brigade Hotel Ventures shares are currently commanding a GMP of Rs 1.5 in the unlisted market. This indicates a potential listing price of Rs 91.5, slightly above the upper price band of Rs 90. This indicates a listing gain of about 1.67%.
However, this remains an unofficial indicator and could change with market sentiment or broader investor cues.
Brigade Hotel Ventures IPO: Subscription numbers so far
The IPO has entered its Day 3 of bidding. So far the IPO has received an overall subscription of 1.65 times.
Breaking it down, the retail investor segment saw strong traction. As of now, the portion received bids of 5.98 times. On the other hand, the non-institutional investor (NII) portion has been subscribed 1.36 times as of now.
Furthermore, the qualified institutional buyer (QIB) category has so far received just 0.27 times subscription.
Brigade Hotel Ventures IPO: Allotment, refund and listing timeline
Following the close of bidding, the allotment of shares is expected to be finalised by July 29. Refunds for unallocated applications and credit of shares to demat accounts are likely to happen on the same day.
The listing of Brigade Hotel Ventures is scheduled to take place on July 31 on both BSE and NSE.
Brigade Hotel Ventures IPO: Offer details
Brigade Hotel Ventures is raising funds through a fresh issue of shares only. This means that there is no offer-for-sale component in this IPO.
In the allocation part, it is split with 75% reserved for QIBs, 15% for NIIs, and 10% for retail investors.
Apart from this, shares worth Rs 75.96 crore are set aside for employees. In a similar note, Rs 303.84 crore worth of shares are reserved for existing shareholders of Brigade Enterprises (BEL).
Brigade Hotel Ventures IPO: IPO proceeds – Focus on debt and land acquisition
The total proceeds from the issue are expected to be Rs 703 crore. Of this, Rs 468.14 crore is placed for repayment of existing loans.
In addition to this, Rs 107.52 crore will go toward acquiring land parcels from the parent company, BEL. The remaining amount is planned to be utilised for acquisitions, expansion of business operations, and general corporate purposes.
Brigade Hotel Ventures IPO: Anchor investor participation
Prior to the opening of the issue, the company managed to raise Rs 324.72 crore through the anchor investor route.
Participation came from several notable mutual funds including SBI MF, Axis MF, Motilal Oswal MF, Bandhan MF, Edelweiss MF, 360 One MF, and Nuvama MF.
About the company
Coming to the company profile, Brigade Hotel Ventures is a wholly-owned subsidiary of Brigade Enterprises, which operates in the real estate sector.
It began its hospitality operations in 2009. As of the latest available information, the company now manages nine hotels across five cities – Bengaluru, Chennai, Kochi, Mysuru, and GIFT City. Together, these properties comprise 1,604 rooms and operate under international hotel brands like Marriott, Accor, and IHG.