Brigade Hotel Ventures Ltd, the hospitality arm of real estate developer Brigade Enterprises, is all set to open its Initial Public Offering (IPO) on July 24, 2025. The public issue will close on July 28. This IPO marks a key milestone for the company as it seeks to strengthen its balance sheet and invest in future expansion plans.
Initially planned at ₹900 crore, the IPO size has now been reduced to ₹759.6 crore. Ahead of the main IPO, Brigade Hotel Ventures raised ₹126 crore through a pre-IPO placement on July 3, 2025. This placement was priced at ₹90 per share and saw participation from marquee investors including 360 ONE Special Opportunities Fund and 360 ONE Large Value Fund.
The IPO will be a fresh issue of shares, with no offer-for-sale (OFS) component. The proceeds from the issue will primarily be used for debt repayment, which currently stands at nearly ₹619 crore. Approximately ₹468 crore from the IPO proceeds will be used to reduce this debt burden. Additionally, around ₹107.5 crore has been earmarked for acquiring land parcels from the promoter group. The remainder will go towards funding future expansion, general corporate purposes, and potential inorganic growth.
Brigade Hotel Ventures is the second-largest owner of chain-affiliated hotels in South India. Its portfolio includes nine operational hotels with a total of 1,604 keys, spread across Bengaluru, Chennai, Mysuru, Kochi, and GIFT City in Gujarat. The properties are operated under international brands such as Marriott, Accor, and IHG, reflecting a well-established asset-light and franchise-based business model.
Also read, Brigade Eyes Sustainable Growth Through Greenfield Ventures and Hospitality Listing
Financially, the company posted revenues of ₹468.3 crore in the fiscal year ending March 2024, reflecting a year-on-year growth of 16.6 percent. However, net profit fell to ₹23.7 crore from ₹31.1 crore in the previous year, mainly due to higher interest and operational costs. The average occupancy rate stood at 73.3 percent for FY24.
The company is currently valued at around ₹3,418.5 crore based on its pre-IPO placement. This translates to a relatively high price-to-earnings (P/E) ratio of over 53 times, compared to peers such as Indian Hotels and Lemon Tree, which are trading at around 77x and 66x respectively. This premium valuation is attributed to Brigade Hotel Ventures’ robust asset base, brand affiliations, and long-term growth prospects in the hospitality sector.
The IPO price band and lot size are yet to be officially announced and are expected at least two days before the IPO opens. The company plans to list its shares on both the BSE and NSE, with the tentative listing date set for July 31, 2025.
Investors will be closely watching key dates such as the anchor investor allotment on July 23, public subscription from July 24 to 28, and the basis of allotment expected by July 29. The IPO is likely to attract long-term investors interested in the hospitality and real estate sectors, given the company’s strong parentage, diversified portfolio, and focus on debt reduction.
With the hospitality industry showing steady recovery post-pandemic and Brigade Hotel Ventures holding a strategic position in key southern markets, the IPO presents a notable opportunity. However, the final investor sentiment will depend on the announced price band, market conditions, and grey market premium activity closer to the launch date.