Live News

Brigade Hotel Ventures IPO: Preparing to Open on July 24

If you’ve been keeping an eye on the stock market lately, you’ve probably heard a buzz building around the Brigade Hotel Ventures IPO. The company is finally opening its IPO on Wednesday, July 24, and investors — big and small — are paying close attention.

Why? For the simple reason that this is not another hotel stock. It’s the hotel division of the Brigade Group, a name synonymous with South India’s real estate and hospitality scene. And better still, preliminary indicators of the grey market suggest that we may be in for a listing gain of as much as 18–19%. That is something one would not wish to miss.

Let’s get into what exactly this IPO is about — and whether it’s worth keeping an eye on.

https://economictimes.indiatimes.com/markets/ipos/fpos/brigade-hotel-ventures-ipo-to-open-on-july-24-gmp-hints-at-18-premium/articleshow/122831418.cms?from=mdr
 

 

So, Who Are They?

Brigade Hotel Ventures is the hospitality arm of Brigade Enterprises, and it’s been around for a while. It owns and operates nine luxury and upscale hotels across major cities like Bengaluru, Mysuru, Chennai, and Kochi, with over 1,600 rooms. These hotels aren’t standalone either — they’re part of brands you’ll recognize: Sheraton, Holiday Inn, Mercure, and Grand Mercure, thanks to strategic partnerships with Marriott, Accor, and IHG.

Overall, a settled, established company in a post-pandemic sector that is healing nicely.

 

IPO Details at a Glance

* **Price Band**: ₹85 to ₹90 per share

  • Lot Size: 165 shares
  • Issue Size: ₹759.6 crore
  • Offer Type: 100% Fresh Issue (No Offer-for-Sale)
  • Allotment Date: July 29
  • Expected Listing: July 31 on NSE & BS
    Unlike most IPOs in which promoters sell a fraction of their holding, this is a straight new issue — i.e., the entire funds raised will be put into the business. That’s usually good news for investors.

 

What Will They Do With the Money?

This is what the company is going to do with the funds:

  • Repay loans of ₹468 crore
  • Acquire new land for future hospitality projects
  •  Explore general corporate requirements
  • Paydown of debt is always welcome — it strengthens the balance sheet and aids profitability in the long term. Land acquisition also indicates long-term expansion plans, which is good for long-term investors.

 

What’s the Buzz in the Grey Market?

Here begins the buzz. Even before the IPO reaches the public market, Brigade Hotel Ventures shares are quoted in the grey market at a premium of ₹15 to ₹17.

That’s a 18–19% premium over the issue price of ₹90. It’s unofficial, of course, but a good pointer to demand and optimism. Investors are obviously betting that the stock will list at ₹105–₹107 when it comes to the exchanges on July 31.

 

Why Investors Are Interested?

That’s what cuts it for Brigade Hotel Ventures:

  1. Strong Parentage & Partnerships

Supported by the reputed Brigade Group and aligned with best-in-class hotel brands, the company has credibility and experience under its belt.

2. Travel & Hospitality Growth

Domestic travel, corporate travel, and events are once again booming in India. Room rates as well as occupancy levels are rising — and Brigade is poised to take advantage of this trend.

3. No OFS — Only Fresh Capital

As promoters are not selling their holding, that demonstrates faith in the company. All of ₹759.6 crore will be used in expansion and repayment of debt.

4. Institutional Trust

The company has itself raised ₹126 crore in a pre-IPO placement to 360 ONE Alternates (formerly IIFL) — that gives credibility and confidence.

 

A Few Things to Be Cautious About

As all is rosy, don’t forget to remember these:

  • The hospitality industry is seasonal and economy-sensitive. Pacing can influence revenues.
  • The firm is profitable, but the IPO is fairly costly, so a lot of optimism can already be priced in.
  •  Grey market sentiment is only one signal — it is not a guarantee of listing profits.

 

If you’re looking for short-term gains, this IPO might deliver. The GMP suggests strong interest, the fundamentals are solid, and the post-COVID travel boom continues to lift the sector.

For long-term investors, it’s a chance to be part of a company that’s not just stable today but is planning smartly for tomorrow. With debts coming down and expansion in the pipeline, there’s potential here.

Just be certain about your investment intentions — and don’t let FOMO cloud your judgment.

 

Dates to Remember:

  • Apply between July 24–26
  • Allotment on July 29
  • Listing likely on July 31

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button