Brigade Hotel Ventures IPO

About Brigade Hotel Ventures IPO

The IPO of Brigade Hotel Ventures Ltd is a 100% book-built issue. The IPO comprises only fresh issue with no offer for sale. The total issue size of the offer aggregates up to ₹759.6 crore. The price band is ₹85 to ₹90 and the lot size is 166. The company are an owner and developer of hotels in key cities in India primarily across South India.

The IPO opening date is July 24, 2025. The closing date is July 28, 2025. The allotment date is July 29, 2025. The listing date is July 31, 2025. The initiation of refunds will take place on July 29, 2025.

Brigade Hotel Ventures Ltd is the second largest owner of chain-affiliated hotels and hotel rooms in South India. The IPO opens on July 24, 2025 and closes on July 28, 2025. The listing date is July 31, 2025 and the allotment date is July 29, 2025. The credit of shares to the Demat account will take place on July 30, 2025, while the initiation of refund will take place on July 29, 2025.

The company is a subsidiary of BEL which is a real estate developer in India. Its association with BEL gives it a competitive edge and allows it to leverage its brand reputation, relationships with corporate clients and expertise in developing real estate properties.

Objectives of Brigade Hotel Ventures IPO

The company plans to utilise the IPO proceeds for:

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company and its material subsidiary SRP Prosperita Hotel Ventures Limited

• Payment of consideration for buying of undivided share of land from its promoter, BEL

• Pursuing inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes

Industry Outlook

Demand for chain affiliated hotels has increased from 61k rooms per day for Fiscal 2015 to 116k rooms per day for Fiscal 2024 to 127k rooms per day at the end of Fiscal 2025. Demand grew at 9.9% CAGR2 between Fiscal 2001 and Fiscal 2025, including 7.6% CAGR between Fiscal 2015 to Fiscal 2025. Demand growth in the last 3 years, was at 5.6% CAGR between Fiscal 2023 and Fiscal 2025.

Per WTTC, the travel and tourism sector’s contribution to India’s economy was ₹15.7 trillion and ₹19.1 trillion for calendar year 2022 and calendar year 2023 respectively. As per the WTTC Economic Impact Factsheet released on 28 June 2024 the travel and tourism sector’s contribution to India’s economy was estimated at ₹21.2 trillion for calendar year 2024 and forecasted at ₹43.3 trillion for calendar year 2034, growing at 7.4% CAGR from calendar year 2024 to calendar year 2034.

Company Information

Brigade Hotel Ventures Ltd is an owner and developer of hotels in key cities in India primarily across South India. It’s the second largest owner of chain-affiliated hotels and rooms in South India. The company’s hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group and are in the upper upscale, upscale, upper-midscale, and midscale segments.

Its promoter, Brigade Enterprises Limited (“BEL”) entered into the hospitality business in 2004 with the development of our first hotel Grand Mercure Bangalore, which commenced operations in 2009. As of the date of this Red Herring Prospectus, it has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys.

Strengths of Brigade Hotel Ventures IPO

• Strategically Located Award Winning Hotels with Diversified Offerings in the Key Cities primarily in South India
  
• Focus on Asset Management Resulting in Operating Efficiencies
  
• Focus on Environmental, Social & Governance
  
• Strong Parentage of Brigade Group
  
• Well Positioned to Leverage Industry Tailwinds
  
• Experienced Management Team with Domain Expertise
  
• Track Record of Financial Performance
  

Risks of Brigade Hotel Ventures IPO

• Dependence on Third-Party Hotel Operators and Risk of Agreement Termination
  
• Revenue Concentration Risk from Key Hotels and Locations
  
• Risks Related to Delays in Planned Hotel Developments
  
• Past Losses and Potential Future Losses May Adversely Impact Its Financial Health and Operations
  
• Inability to Control Recurring Expenses May Adversely Affect Financial Performance
  
• Dependence on Food and Beverage Revenue and Associated Quality Risks
  
• High Workforce Attrition and Service-Related Risks
  
• Uncertainty in Land Acquisition and Project Execution May Adversely Affect Its Business
  

Anchor Investor Bidding Date

Anchor portion of the IPO opens on July 23, 2025.

IPO Registrar and Book Running Lead Managers

KFin Technologies Ltd is the registrar to this IPO. The book running lead managers are J M Financial Ltd and ICICI Securities Ltd.

Business Model

Brigade Hotel Ventures Ltd is the second largest owner of chain-affiliated hotels and rooms in South India. As of the date of the draft red herring prospectus, the company had a portfolio of nine operating hotels across Bengaluru, Chennai, Kochi, Mysuru and the GIFT City with 1,604 keys.

Company Growth Trajectory

The company’s revenue from operations grew from ₹ 356.410 crores in FY 23 to ₹ 470.680 crores in FY 25, while its revenue grew from 14.70% in FY 24 to 16.57% in FY 25. The company’s total income registered a growth from 13.59% in FY 24 to 16.26% in FY 25. Return on adjusted capital employed grew from 9.50% in FY 23 to 16.27% in FY 25. Strong parentage of Brigade group coupled with focus on asset management resulting in operating efficiencies has helped in the company’s growth.

Market Position

Brigade Hotel Ventures Ltd is the second largest owner of chain-affiliated hotels and rooms in South India. The company is a wholly-owned subsidiary of BEL which is one of the leading Indian real estate developers in India. Its association with BEL gives it a competitive edge and allows it to leverage its brand reputation, relationships with corporate clients and expertise in developing real estate properties.

How to Check Allotment Status of Brigade Hotel Ventures IPO?

You can check the allotment status of Brigade Hotel Ventures Ltd IPO through the BSE website or through the registrar’s portal. To check status via BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down.
• Enter your application number or PAN number
• Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status

To check status through registrar’s portal:

• Visit the website of KFin Technologies Ltd
• Choose IPO allotment status from “Products’ dropdown
• Click on any of the links
• Select the IPO
• Input either your application number, PAN number or Demat number
• Enter captcha and click on Submit

How to Apply for Brigade Hotel Ventures Ltd IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.