IPO Details
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Schedule of Brigade Hotel Ventures IPO
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About Brigade Hotel Ventures Ltd IPO
The IPO of Brigade Hotel Ventures Ltd. is a 100% book-built issue. The IPO comprises only a fresh issue with no offer for sale. The total issue size of the offer aggregates up to ₹900 crore.
Objectives of Brigade Hotel Ventures Ltd 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 an undivided share of land from its promoter, BEL
- Pursuing inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
Brigade Hotel Ventures Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | Up to ₹900 crore |
Offer for Sale | NA |
Basic EPS in ₹ for FY 24 | 0.88 |
Brigade Hotel Ventures Ltd IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the net issue |
Non-institutional Bidders | Not more than 15% of the net issue |
Retail Individual Bidders | Not more than 10% of the net issue |
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. Demand grew between Fiscal 2001 and Fiscal 2024 at 9.9% CAGR. Demand growth for chain-affiliated hotels in India is expected to grow at a CAGR of 10.4% between FY 24 and FY 29. ** 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.
Strengths of Brigade Hotel Ventures Ltd
Strategically Located Award Winning Hotels with Diversified Offerings in Key Cities
The company is an owner and developer of hotels in key cities in India, primarily across South India. It has a portfolio of nine operating hotels across Bengaluru, Chennai, Kochi, Mysuru, and the GIFT City with 1,604 keys as of the date of its draft red herring prospectus.
Focus on Asset Management Resulting in Operating Efficiencies
Brigade Hotel Ventures Ltd has a business model where it either owns or leases hotel assets and engages global hospitality companies to operate, maintain and market its hotel assets under management contracts. This approach helps it attract a global clientele, efficiently manage day-to-day operations, and attract top talent.
They closely monitor and exercise regular oversight to optimize performance of their hotels. They engage with each hotel’s operator management team to discuss and agree upon budgeting, cost management, and operational and financial targets.
They regularly review performance reports, conduct meetings with the operator’s management teams, and participate in the recruitment of key personnel for their hotels, including the general manager, executive chef, and Director of finance department.
Strong Parentage of Brigade Group
They are a wholly owned subsidiary of BEL, which is one of the leading real estate developers in India (source: Horwath HTL Report). BEL is a multi-asset class real estate developer with projects across real estate, leasing, and hospitality businesses. The real estate business, from January 2021 to June 30, 2024, has completed 33 projects with an aggregate developable area of 17.49 million square feet and 11.79 million square feet of aggregate saleable area.
Risks of Brigade Hotel Ventures Ltd
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A significant portion of its revenues is derived from its four hotels located in Bengaluru. 62.91% of its revenue from operations in Fiscal 2024 was from its hotels located in Bengaluru. Any adverse developments affecting such hotels or locations could have an adverse effect on its business, financial condition, cash flows, and results of operations.
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The company gets a significant portion of its revenues from its hotels, Sheraton Grand Bangalore at Brigade Gateway, Holiday Inn Chennai OMR IT Expressway, and Holiday Inn Bengaluru Racecourse (61.71% of the revenue from operations were from these hotels in Fiscal 2024). Any adverse developments affecting these hotels could have an adverse effect on their business, results of operations, financial condition, and cash flows.
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They have a large number of personnel deployed across our hotels, consequently, they may be exposed to service-related claims and losses or employee disruptions that could have an adverse effect on our reputation, business, results of operations, financial condition, and cash flows. The attrition rate of their employees in Fiscal 2024 was 48.16%.
Brigade Hotel Ventures Ltd Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
| Parameter for FY 24 | Brigade Hotel Ventures Ltd | Indian Hotels Company Ltd | EIH Ltd | Chalet Hotels Ltd | Juniper Hotels Ltd | Lemon Tree Hotels Ltd | Samhi Hotels Ltd | Apeejay Surendra Park Hotels Ltd |
|---|---|---|---|---|---|---|---|---|
Revenue from Operations (in ₹ crore) | 401.700 | 6768.750 | 2511.271 | 1417.252 | 817.663 | 1077.123 | 957.393 | 578.970 |
P/E | NA | 77.51 | 39.04 | 64.56 | 259.73 | 65.56 | NA | 41.69 |
Return on Net Worth (in %) | 53.01 | 13.13 | 16.58 | 15.03 | 0.90 | 11.75 | NA | 5.74 |
EPS in ₹ | 0.88 | 8.86 | 10.22 | 13.54 | 1.46 | 1.88 | 14.67 | 3.82 |
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 total income grew from ₹151.950 crore in FY 22 to ₹404.850 crore in FY 24. Its EBITDA margin grew from 3.46% in FY 22 to 35.72% in FY 24. Its profit soared from ₹(827.20) crores in FY 22 to ₹311.40 crores in FY 24.
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.
Brigade Hotel Ventures Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 404.850 | 356.410 | 151.950 |
Restated Profit/(loss) Before Tax (in ₹ crore) | 32.080 | 4.540 | 114.690 |
Restated Profit/(loss) after Tax (in ₹crore) | 311.40 | 30.90 | 827.20 |
EBITDA (in ₹ crore) | 144.610 | 113.980 | 5.250 |
EPS in ₹ | 0.88 | 0.14 | 2.92 |
Brigade Hotel Ventures Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Restated Profit/(loss) Before Tax (in ₹ crore) | 32.080 | 4.540 | 114.690 |
Net Cash Flow (used in)/From Operating Activities (in ₹ crore) | 154.860 | 107.870 | 13.140 |
Net Cash Flow From/ (used in) Investing Activities (in ₹ crore) | 45.300 | 0.980 | 11.110 |
Net Cash Flow From / (used in) Financing Activities (in ₹ crore) | 92.130 | 132.240 | 25.090 |
Cash and Cash Equivalents at the End of the Period/ Year | 3.950 | 13.480 | 9.910 |
How to Check Allotment Status of Brigade Hotel Ventures Ltd?
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.
Brigade Hotel Ventures IPO FAQs
What is the Brigade Hotel Ventures Ltd IPO?
The Brigade Hotel Ventures Ltd IPO is a 100% book-built issue comprising only a fresh issue aggregating up to ₹900 crore.
When will the IPO of Brigade Hotel Ventures go live?
The exact dates of the IPO are yet to be announced.
From where can I read more about Brigade Hotel Ventures Ltd?
You can read more about Brigade Hotel Ventures Ltd from the company’s draft red herring prospectus here:(SEBI | Brigade Hotel Ventures Ltd DRHP)
