Bengaluru – Brigade Hotel Ventures Ltd, the hospitality arm of Bengaluru-based real estate major Brigade Enterprises Ltd, has successfully raised ₹126 crore from 360 ONE Asset Management through a pre-IPO placement. The investment, which involves the sale of 1.4 crore shares at ₹90 per share, accounts for a 4.74% stake in the company’s pre-offer equity and marks a significant step forward in the company’s plans to go public.
Following this strategic pre-IPO funding, Brigade Hotel Ventures has revised its planned IPO size from ₹900 crore to approximately ₹774 crore. The IPO is expected to hit the market soon, and the funds raised through the public offer will primarily be used to strengthen the company’s balance sheet and support its expansion strategy.
According to the company’s Draft Red Herring Prospectus (DRHP), the capital raised will be allocated toward debt repayment, land acquisition, and future growth opportunities. Around ₹481 crore will go towards reducing outstanding debt, with ₹412 crore attributed to the parent entity and ₹69 crore to its subsidiary, SRP Prosperita Hotel Ventures Ltd. An additional ₹107.5 crore has been earmarked for land acquisition, while the remainder will be used for inorganic growth and other business initiatives.
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Brigade Hotel Ventures, established in 2004, owns and operates a portfolio of nine hotels with a total inventory of 1,604 keys. These properties are located across key cities including Bengaluru, Mysuru, Chennai, Kochi, and GIFT City in Gujarat. The hotels are managed under well-known international brands such as Marriott, InterContinental Hotels Group (IHG), and AAPC India. The company has positioned itself as one of the largest private hotel asset owners in South India.
The fresh capital infusion from 360 ONE is expected to improve the company’s financial flexibility, reduce interest costs, and enhance its ability to expand in strategic locations. The move also reflects growing investor confidence in Brigade Hotel Ventures’ business model and growth potential.
JM Financial and ICICI Securities have been appointed as the book-running lead managers for the upcoming IPO. With robust backing and a strong portfolio, Brigade Hotel Ventures is poised for a promising debut in the capital markets.
As the hospitality sector continues to recover and grow post-pandemic, Brigade Hotel Ventures’ IPO is expected to attract considerable interest from institutional and retail investors alike. The successful pre-IPO placement indicates positive market sentiment and sets the stage for what could be one of the key listings in the Indian hospitality space this year.
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