Brigade Hotel Ventures Limited

Brigade Hotel Ventures Limited, a Bengaluru-based hospitality arm of Brigade Enterprises, is set to launch its IPO on the BSE and NSE from July 24 to July 28, 2025.

Founded in 2004, the company owns and develops nine hotels with 1,604 keys across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, operated by global brands like Marriott, Accor, and InterContinental. It is the second-largest chain-affiliated hotel owner in South India.

IPO Snapshot:

Issue Size: ₹759.60 Cr (100% Fresh Issue, 8.44 Cr shares)

Price Band: ₹85–₹90 per share

Lot Size: 166 shares | Min investment: ₹14,110–₹14,940

GMP (as of July 28): ₹1.5–₹8 per share ➤ Implies expected listing gains of 1.67%–8.89%

Allotment Date: July 29, 2025 | Tentative Listing: July 31, 2025

Lead Manager: JM Financial Limited, ICICI Securities Limited

Financial Performance:

FY24 Revenue: ₹401.7 Cr | PAT: ₹31.14 Cr

FY25 Revenue: ₹470.68 Cr | PAT: ₹23.66 Cr ➤ 16% revenue growth | 24% PAT decline

RoCE: 16.27% (FY25) vs. 9.50% (FY23)

Occupancy: 64.5% (FY25), above industry average of 64%

IPO Objectives:

₹468.14 Cr for repayment of borrowings

₹107.52 Cr for land purchase from promoter (BEL)

Balance for acquisitions and general corporate purposes

Why It’s Interesting:

Strong parentage from Brigade Enterprises, a leading real estate developer

Operates in high-demand hospitality markets with global brand tie-ups

Expansion plans include five hotels, including a Grand Hyatt in Chennai

Benefits from India’s tourism growth (₹21.2 trillion contribution to economy in 2024)

Positive GMP suggests modest listing gains

Risks to Consider:

24% PAT decline in FY25 raises sustainability concerns

High debt repayment focus may limit growth investments

Dependence on South India for revenue

Mainboard IPO risks: market volatility, large issue size

Modest GMP indicates limited short-term upside

Bottom Line: Brigade Hotel Ventures offers exposure to India’s growing hospitality sector with strong brand backing and operational efficiency. However, the PAT decline and modest GMP suggest caution. Retail investors with moderate risk appetite may consider applying for long-term potential, while short-term gains appear limited. Review the Red Herring Prospectus at https://bhvl.in/

Disclaimer: This post is for informational purposes only and does not constitute investment advice. Always consult a SEBI-registered financial advisor before investing in any IPO.

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