Brigade Enterprises' Hospitality Arm Files For Rs 900-Crore IPO

Bengaluru-based Brigade Hotel Ventures Ltd. has filed its draft red herring prospectus with the Securities and Exchange Board of India, aiming to raise Rs 900 crore through a fresh issue of equity shares.

The offering will consist entirely of new shares with a face value of Rs 10 each, aggregating to Rs 900 crore. There will be no offer for sale, as confirmed in the regulatory filing. Prior to this issue, the company’s outstanding equity comprises 28.14 crore shares with a face value of Rs 10 each.

The company, a wholly-owned subsidiary of Brigade Enterprises Ltd., plans to list on the mainboard, with JM Financial Ltd. and ICICI Securities Ltd serving as book-running lead managers for the public issue.

Brigade Hotel Ventures intends to utilise the IPO proceeds for multiple purposes:

• Repaying or prepaying certain outstanding debts, with Rs 412 crore earmarked for the company and an additional Rs 69 crore designated for its material subsidiary, SRP Prosperita Hotel Ventures Ltd.

• Acquiring an undivided share of land from BEL, with Rs 107.52 crore allocated to this purpose.

• Supporting strategic acquisitions, other growth initiatives, and general corporate activities.

• The company may also consider a pre-IPO placement of up to Rs 180 crore, which, if executed, will reduce the overall issue size accordingly.

Brigade Hotel Ventures, founded as part of BEL’s expansion into hospitality in 2004, launched its first hotel, Grand Mercure Bangalore, in 2009. Currently, the company operates a portfolio of nine hotels, totalling 1,604 keys, across locations including Bengaluru, Chennai, Kochi, Mysuru, and GIFT City. These hotels are managed by prominent global hospitality brands such as Marriott, Accor, and InterContinental Hotels Group. 

Proceeds from the IPO, will predominantly support the company's debt repayment strategy, land acquisition, and future expansion.