Brigade Hotel Ventures IPO: All You Need to Know Before Investing
The Brigade Hotel Ventures IPO is set to open on July 24, 2025, offering investors a new opportunity in India’s growing hospitality sector. A wholly owned subsidiary of Brigade Enterprises, this hotel-focused company operates nine upscale hotels across South India under brands like Marriott, Accor, and IHG.
Through this IPO, Brigade Hotel Ventures aims to raise ₹759.60 crore, with funds allocated to repay debt and support future growth. Backed by a strong promoter group and well-established hotel operations, the company is positioning itself to ride the post-pandemic rebound in business and leisure travel.
In this article, we provide a complete review of the Brigade Hotel Ventures IPO, covering the issue structure, business model, financial performance, peer comparison, and listing outlook.
Details & Dates of Brigade Hotel Ventures IPO
The Brigade Hotel Ventures IPO is a book-built issue with a total size of ₹759.60 crore. The issue consists entirely of a fresh offering of 8.44 crore shares, meaning no part of it is an Offer for Sale (OFS). The fresh capital will be used for debt repayment, land acquisition, and strategic growth plans (detailed later in this blog).
IPO Snapshot
| Parameter | Details |
|---|---|
| IPO Name | Brigade Hotel Ventures IPO |
| Issue Type | Book Building (Fresh Issue Only) |
| IPO Size | ₹759.60 crore |
| Face Value | ₹10 per share |
| Price Band | ₹85 to ₹90 per share |
| Lot Size | 166 shares |
| Employee Discount | ₹3 per share |
| Listing Exchange | BSE, NSE |
| Lead Manager | JM Financial Limited |
| Registrar | Kfin Technologies Limited |
🔹 Important Dates (Tentative)
| Event | Date |
|---|---|
| IPO Opens | July 24, 2025 |
| IPO Closes | July 28, 2025 |
| Allotment Finalization | July 29, 2025 |
| Refunds Initiated | July 29, 2025 |
| Shares Credited to Demat | July 30, 2025 |
| Listing Date | July 31, 2025 |
| UPI Mandate Deadline | 5 PM, July 28, 2025 |
🔹 Lot Size & Investment Limits
Investors can bid for a minimum of 1 lot (166 shares) and in multiples thereafter.
| Category | Min. Investment | Max. Investment |
|---|---|---|
| Retail | ₹14,940 (1 lot) | ₹1,94,220 (13 lots) |
| sNII | ₹2,09,160 (14 lots) | ₹9,86,040 (66 lots) |
| bNII | ₹10,00,980 (67 lots) | — |
🔹 Reservation Quota
| Investor Category | Percentage of Issue |
|---|---|
| QIB | Not less than 75% |
| NII | Not more than 15% |
| Retail (RII) | Not more than 10% |
Additionally, there are special reservations for:
- Shareholders of Brigade Enterprises Ltd. (up to ₹2 lakh)
- Employees of Brigade Hotel Ventures Ltd. (up to ₹5 lakh)
- Shareholder + Employee combined categories (subject to limits)
Applicants eligible under multiple categories may apply under each—improving their chances of allotment.
IPO Objectives: Where Will Brigade Use the Funds?
The Brigade Hotel Ventures IPO is a pure fresh issue, meaning the entire ₹759.60 crore raised will go directly to the company for expansion and financial restructuring. Here’s how the proceeds are proposed to be utilized, as per the company’s Red Herring Prospectus (RHP):
Breakdown of IPO Proceeds
| Purpose | Estimated Amount (₹ crore) |
|---|---|
| 1. Repayment/prepayment of borrowings (Company + SRP Prosperita subsidiary) | ₹468.14 |
| 2. Purchase of land share from promoter (Brigade Enterprises Ltd.) | ₹107.52 |
| 3. Inorganic growth opportunities and general corporate purposes | Remaining amount |
Key Highlights of Each Objective
1. Debt Repayment / Prepayment (₹468.14 crore)
The company and its material subsidiary, SRP Prosperita Hotel Ventures Ltd., will use a significant chunk of the funds to reduce debt. This is expected to lower interest burden, improve credit metrics, and free up cash flow for future hotel expansions or upgrades.
2. Land Acquisition from Promoter (₹107.52 crore)
Brigade Hotel Ventures plans to purchase an undivided share of land from Brigade Enterprises Ltd. (BEL). This will strengthen its asset ownership and improve the balance sheet by converting leased or shared land into owned assets—potentially enhancing future returns.
3. Inorganic Growth and Strategic Initiatives
A part of the proceeds will be kept flexible for future acquisitions or expansion into new geographies, including both hotel developments and allied hospitality verticals. This reflects the company’s intent to scale through M&A or joint ventures as opportunities arise.
Company Overview & Business Model
Brigade Hotel Ventures Ltd. is a hospitality company primarily focused on owning and developing hotels in key Indian cities, especially across South India. It is a subsidiary of Brigade Enterprises Ltd. (BEL)—a well-known name in Indian real estate—which gives it an edge in sourcing prime locations, developing assets efficiently, and leveraging mixed-use real estate ecosystems.
As of March 31, 2025, Brigade Hotel Ventures is the second-largest private owner of chain-affiliated hotels and hotel rooms in South India, among players with 500+ rooms nationwide (Horwath HTL Report).
Current Portfolio & Operations
- 9 operational hotels across:
- Bengaluru, Mysuru (Karnataka)
- Chennai (Tamil Nadu)
- Kochi (Kerala)
- GIFT City (Gujarat)
- 1,604 keys as of the date of the Red Herring Prospectus (up from 1,474 in FY23)
- Operated by global hospitality majors like Marriott, Accor, and IHG
- Covers midscale to luxury segments, offering a mix of:
- Fine dining and specialty restaurants
- MICE (Meetings, Incentives, Conferences, Exhibitions) facilities
- Lounges, pools, spas, gyms, and wellness offerings
As of FY2024, BHVL’s portfolio includes:
| Hotel Name | Brand / Operator | Location | Keys |
|---|---|---|---|
| Sheraton Grand | Marriott | Bengaluru | 230 |
| Grand Mercure | Accor | Mysuru | 146 |
| Holiday Inn Chennai | IHG | Chennai | 202 |
| Four Points by Sheraton | Marriott | Kochi | 218 |
| ibis Bengaluru | Accor | Bengaluru | 185 |
| Grand Mercure Bengaluru | Accor | Bengaluru | 126 |
Total room count (including under development): ~1,390 keys
The company’s flagship hotel, Sheraton Grand Bangalore at Brigade Gateway, has won accolades like “City Hotel of the Year” and “Leading Luxury Hotel,” reflecting Brigade’s commitment to premium hospitality experiences.
Business Model: Asset Ownership + Global Ops
Brigade follows a hybrid model:
- Owns or leases hotel properties
- Partners with global hospitality brands to manage daily operations under long-term contracts
- Brand-agnostic strategy: Aligns hotel brand selection with market demand, location profile, and customer expectations
This allows Brigade to:
- Maintain control over assets
- Leverage global brands for positioning, marketing, and operational excellence
- Stay adaptable and scale across various hospitality segments
Strong Parentage: Brigade Enterprises Ltd.
Being a wholly-owned subsidiary of BEL provides multiple benefits:
- Access to prime land parcels and strategic locations in major cities
- Mixed-use project integration (hotels developed alongside office, retail, and residential hubs)
- Shared procurement, development, and operating efficiencies
- Strong backing for funding and future expansion
Location-Led Strategy
Brigade selects hotel sites based on:
- Proximity to airports, business districts, and IT hubs
- Tourist hotspots and cultural heritage (e.g., Mysore Palace, Kochi Infopark)
- High footfall zones such as shopping areas and commercial neighborhoods
Examples include:
- Grand Mercure Bangalore – heart of Koramangala, surrounded by tech parks and entertainment
- Grand Mercure Mysuru – near Mysore Palace
- Grand Mercure Ahmedabad GIFT City – in India’s international financial hub
Occupancy & Market Position
- FY25 average occupancy: 76.76%, well above industry average of 64.5%
- Supported by rising domestic and foreign travel and limited new supply in core markets
- Future-ready pipeline focused on high-demand cities with low future inventory growth
Expansion Pipeline (Planned Completion by FY2028–29)
| Location | Brand / Segment | Operator | Status |
|---|---|---|---|
| Chennai (ECR) | Luxury beach resort | Grand Hyatt | By FY28 |
| Bengaluru (2 hotels) | Upper-midscale | Fairfield by Marriott | By FY28 |
| Hyderabad | Luxury hotel | InterContinental | By FY29 |
| Vaikom, Kerala | Wellness resort (14.7 acres) | The Ritz-Carlton | By FY29 |
Additionally, Brigade has entered into MOUs or definitive agreements for hotels under:
- JW Marriott (Chennai – OMR)
- Courtyard by Marriott (Chennai – WTC)
- Marriott (Thiruvananthapuram – WTC)
⚠️ Note: Land arrangements are pending for some of these future projects.
Operational Efficiency & Leadership
Brigade actively works with operators to set performance targets and optimize costs through:
- Energy savings
- Shared services
- Lean staffing
- Smart tech adoption
The leadership team, including industry veterans like Nirupa Shankar, Amar Mysore, and Vineet Verma, brings deep expertise in hospitality operations, development, and asset management.
Financial Overview of Brigade Hotel Ventures IPO
Brigade Hotel Ventures Ltd. has shown consistent top-line growth over the last three fiscal years, although profitability took a temporary hit in FY25. Let’s break down the numbers to understand how the company is positioned before the Brigade Hotel Ventures IPO.
Key Financials (₹ in Crore)
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 356.41 | 404.85 | 470.68 |
| EBITDA | 113.98 | 144.61 | 166.87 |
| Profit After Tax | -3.09 | 31.14 | 23.66 |
| Net Worth | 33.81 | 58.74 | 78.58 |
| Total Assets | 840.67 | 886.78 | 947.57 |
| Total Borrowings | 632.50 | 601.19 | 617.32 |
Highlights:
- Revenue has grown steadily with a 16% YoY increase in FY25, reflecting higher hotel occupancy and improved room rates.
- EBITDA margin remains strong at over 35%, a positive sign for operating efficiency.
- PAT dropped by 24% YoY in FY25, mainly due to increased interest costs and one-off expenses.
- Despite the PAT dip, the company has reduced its borrowings from FY23 to FY24 and maintained a healthy net worth build-up.
Key Ratios (As of FY25)
| KPI | Value |
|---|---|
| ROCE | 13.62% |
| RoNW | 30.11% |
| PAT Margin | 5.03% |
| EBITDA Margin | 35.45% |
| Debt/Equity Ratio | 7.40 |
| Price to Book Value | 32.26 |
| EPS (Pre-Issue) | ₹0.72 |
| P/E Ratio (Post-Issue) | 125x |
| Market Cap | ₹3,418.47 Cr |
Analysis:
- A high Debt/Equity ratio of 7.40 indicates a leveraged capital structure, which is expected to improve post-IPO with significant debt repayment.
- RoNW of 30.11% showcases strong returns on shareholders’ equity, an attractive trait for potential investors.
- The P/E ratio of 125x seems stretched and reflects premium valuation, possibly driven by asset ownership and strategic location benefits.
Valuation & Peer Comparison of Brigade Hotel Ventures IPO
When it comes to valuation, Brigade Hotel Ventures IPO is entering the market with a steep price-to-earnings (P/E) ratio of 125x, based on its FY25 post-issue financials. That’s significantly higher than the average industry P/E, especially when compared to larger, more established players in the Indian hospitality sector.
Peer Comparison (As of March 31, 2025)
| Company Name | EPS (₹) | NAV (₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Brigade Hotel Ventures Ltd | 0.72 | 2.79 | 125.00 | 30.11 |
| Indian Hotels Co. Ltd (Taj Group) | 13.40 | 87.22 | 56.06 | 16.42 |
| EIH Ltd (Oberoi Group) | 11.82 | 75.86 | 32.20 | 16.23 |
| Chalet Hotels Ltd | 6.53 | 139.42 | 136.63 | 4.68 |
| Juniper Hotels Ltd | 3.20 | 122.55 | 99.48 | 2.61 |
| Lemon Tree Hotels Ltd | 2.48 | 22.59 | 62.04 | 13.59 |
| Samhi Hotels Ltd | 3.88 | 51.63 | 62.75 | 7.49 |
| Apeejay Surrendra Park Hotels Ltd | 3.92 | 60.17 | 42.05 | 6.51 |
| Ventive Hospitality Ltd | 6.83 | 252.88 | 115.58 | 0.82 |
| ITC Hotels Ltd | 3.05 | 51.55 | 78.20 | 5.94 |
| Schloss Bangalore Ltd | 1.97 | 107.95 | 229.34 | 1.32 |
Key Observations:
- High P/E Premium: Brigade Hotel Ventures commands a premium that is more than double the P/E of Indian Hotels Company (56x) and even higher than EIH (32x), both of which are significantly larger with better earnings profiles.
- RoNW is Strong: The Return on Net Worth (RoNW) for Brigade Hotel Ventures stands at 30.11%, one of the best among listed peers, showcasing strong internal capital efficiency.
- Low NAV: With a Net Asset Value (NAV) of just ₹2.79 per share, Brigade appears expensive in terms of price-to-book (P/B) as well, clocking a P/B ratio of 32.26x, significantly above industry averages.
Verdict on Valuation
From a valuation standpoint, Brigade Hotel Ventures IPO appears aggressively priced, especially when benchmarked against well-established hotel chains with consistent profitability and stronger balance sheets. The high debt-equity ratio (7.4x) and relatively low PAT margin (5.03%) also suggest that the company is still in a scaling-up phase, which might not justify such a high premium at this stage.
GMP: Brigade Hotel Ventures IPO
As of July 21, 2025, the Grey Market Premium (GMP) for the Brigade Hotel Ventures IPO stands at ₹0, indicating no premium or discount in the unofficial market. Here’s a summary of the GMP trend:
Brigade Hotel Ventures IPO Day-wise GMP Trend
| GMP Date | IPO Price | GMP | Estimated Listing Price | Estimated Profit | Movement |
|---|---|---|---|---|---|
| 21-07-2025 | ₹90 | ₹0 | ₹90 | ₹0 (0.00%) | No Change |
Disclaimer: GMP is unofficial and should not be the sole basis for investment decisions. Always review the company fundamentals and RHP before investing.
At this point, the flat GMP suggests lukewarm market sentiment. It reflects the high valuation concerns (P/E of 125x) and heavy leverage (Debt/Equity of 7.4x). Investors are likely waiting for more clarity from institutional demand or anchor book details before assigning a grey market premium.
Conclusion: Should You Apply for the Brigade Hotel Ventures IPO?
The Brigade Hotel Ventures IPO offers exposure to the premium hospitality space under the reputed Brigade Group umbrella. While the company has demonstrated strong revenue growth and excellent return ratios (RoNW of 30.11%), it comes at a very steep valuation — a P/E of 125x on FY25 earnings — far higher than many of its listed peers.
Short-Term Strategy
From a listing gains perspective, the prospects appear muted. The GMP is flat at ₹0, indicating no excitement in the grey market. Also, the high valuation and low net asset value (NAV of ₹2.79 vs IPO price of ₹90) raise concerns about post-listing performance.
Unless there is strong anchor or QIB participation before the final bidding day, short-term investors may want to stay cautious or avoid the IPO.
Long-Term Strategy
For long-term investors, the decision depends on your conviction in India’s premium hospitality and tourism recovery theme. Brigade Hotel Ventures benefits from being part of the Brigade Group and has a solid property portfolio including brands like Sheraton, Four Points by Sheraton, and Grand Mercure.
However, concerns include:
- High debt (D/E ratio of 7.4x) limiting future expansion flexibility.
- Low NAV and earnings base, which means any growth is already priced in.
That said, if the company can continue to improve occupancy and ARRs (average room rates), deleverage, and expand margins, it may offer long-term compounding potential — albeit at a slow pace.
Allotment Strategy
Given its retail-friendly lot size (166 shares, ~₹14,940 per lot) and Brigade Group’s brand pull, there may be decent subscription from retail and HNIs. However, unless institutional (QIB) interest builds up in the final bidding days, oversubscription may stay moderate.
If you’re still interested:
- Apply via multiple PANs (friends/family) to increase allotment chances.
- Monitor anchor/QIB participation for final cues before the IPO closes.
Final Verdict: Conservative investors may skip due to stretched valuation and low earnings base. High-conviction long-term investors bullish on hospitality recovery and Brigade Group’s execution strength can consider applying — but only with limited exposure.
FAQs about Brigade Hotel Ventures IPO
What is the Brigade Hotel Ventures IPO issue size?
The IPO size is ₹759.60 crore through a fresh issue of 8.44 crore equity shares.
What are the Brigade Hotel Ventures IPO dates?
The IPO opens on July 24, 2025, and closes on July 28, 2025.
What is the IPO price band for Brigade Hotel Ventures?
The price band is set at ₹85 to ₹90 per share, with a ₹3 discount for eligible employees.
What is the minimum lot size for retail investors?
Retail investors can apply for a minimum of 1 lot (166 shares), requiring an investment of around ₹14,940.
Who are the promoters of Brigade Hotel Ventures?
The IPO is promoted by Brigade Enterprises Limited, a reputed real estate group based in Bengaluru.
What will the IPO funds be used for?
Funds will be used for repayment of debt, working capital, and general corporate purposes.
Is there a GMP for Brigade Hotel Ventures IPO?
As of July 21, 2025, the GMP is ₹0, indicating no premium in the grey market.
Is Brigade Hotel Ventures IPO good for long-term investment?
While the company shows strong returns and brand strength, it is highly valued. Long-term investors should assess their risk tolerance before applying.
How to apply for Brigade Hotel Ventures IPO?
You can apply via your demat account through ASBA (banking apps) or UPI-enabled brokers.
When will Brigade Hotel Ventures IPO be listed?
The tentative listing date is August 1, 2025, on both NSE and BSE.
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