Brigade Hotel Ventures Secures Rs 325 Crore from Anchor Investors Ahead of IPO Launch

Brigade Hotel Ventures Ltd, a hotel developer in southern India, secured Rs 325 crore from anchor investors on Wednesday. This occurred just before its initial public offering (IPO) opened for public subscription. The anchor book attracted several investors, including SBI Mutual Fund, 360 One MF, Axis MF, Motilal Oswal MF, Bandhan MF, Edelweiss MF, and Nuvama MF, as noted in a circular on the BSE website.

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The IPO is set to open on Thursday and will close on July 28. The price range for the shares is between Rs 85 and Rs 90 each. At the top end of this range, the company is valued at over Rs 3,400 crore. The IPO consists entirely of new equity shares worth Rs 759.6 crore with no offer-for-sale component.

Investment Allocation and Use of Proceeds

Brigade Hotel Ventures has allocated over 3.6 crore equity shares to 17 funds at Rs 90 each, raising a total of Rs 324.72 crore. Proceeds from the IPO will be used to pay off debt amounting to Rs 468.14 crore. Additionally, Rs 107.52 crore will go towards purchasing an undivided share of land from its promoter, BEL.

The remaining funds will support acquisitions, strategic initiatives, and general corporate purposes. Earlier this month, Brigade Hotel Ventures raised Rs 126 crore by selling equity shares to 360 ONE Alternates Asset Management.

Company Background and Portfolio

Brigade Hotel Ventures Ltd is a subsidiary of Brigade Enterprises Ltd (BEL), a Bengaluru-based real estate company. BEL ventured into hospitality in 2004 with its first hotel, Grand Mercure Bangalore, which began operations in 2009.

The company now has nine operating hotels across Bengaluru in Karnataka, Chennai in Tamil Nadu, Kochi in Kerala, Mysuru in Karnataka, and GIFT City in Gujarat. These hotels offer a total of 1,604 keys and are managed by renowned hospitality brands like Marriott, Accor, and InterContinental Hotels Group.

Investor Allocation and Listing Details

The company has reserved 75% of the offer size for qualified institutional buyers. Non-institutional investors will receive 15%, while retail investors are allocated the remaining 10%. JM Financial and ICICI Securities are serving as the book-running lead managers for the issue.

Shares of Brigade Hotel Ventures are expected to be listed on stock exchanges on July 31. This listing marks a significant step for the company as it seeks to expand its presence in the hospitality sector.

With inputs from PTI