Brigade Hotel Ventures IPO: Here's What Latest GMP Indicates Ahead of July 24 Launch

Brigade Hotel Ventures Ltd. is set to launch its initial public offering (IPO) this week to raise over Rs 750 crore from the primary market. Brigade Hotel Ventures is a real estate company specialising in developing hotels.

Ahead of the launch on July 24, the Brigade Hotel Ventures IPO grey market premium (GMP) indicated a listing gain of nearly 19% over the issue price. Investors who want to bid for shares in the IPO can check the following key details before submitting their applications.

According to InvestorGain, the latest GMP for the Brigade Hotel Ventures IPO stood at Rs 17 at 9:28 a.m. on July 22. The GMP indicates a listing price of Rs 107 apiece at a premium of 18.89% over the upper limit of the issue price.

Note: GMP does not represent official data and is based on speculation.

Brigade Hotel Ventures IPO is a book-building issue of Rs 759.6 crore. It comprises a fresh issuance of 8.44 crore shares.

Retail investors can participate in the IPO subscription by bidding for a single lot size of 166 shares, amounting to a minimum investment of Rs 14,110. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,09,160. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 67 lots. It will lead to an investment of Rs 10,00,980.

The price band for the IPO has been fixed between Rs 85 and Rs 90 per share.

The subscription window for the IPO will remain open from July 24 to July 28. The allotment of shares is proposed to be finalised on July 29 and the company will also initiate refunds for unsuccessful bidders on the same day. Brigade Hotel Ventures will transfer shares to the Demat accounts of the successful bidders on July 30.

Shares of Brigade Hotel Ventures Ltd. are proposed to be listed on the BSE and NSE on July 31. 

The company has reserved at least 75% of the net issue for the Qualified Institutional Buyers (QIBs). A maximum of 10% of the net issue size is reserved for retail investors and the remaining 15% will be allocated to Non-Institutional Investors (NIIs).

JM Financial Ltd. is the book-running lead manager of the Brigade Hotel Ventures IPO. KFin Technologies Ltd. is the registrar for the issue.

Brigade Hotel Ventures is a developer of hotels and primarily works in South India. It is a fully-owned subsidiary of Brigade Enterprises.

The company will use proceeds from the IPO to clear debt and pursue inorganic growth.

The company reported a 24% year-on-year (YoY) decline in profit after tax (PAT) at Rs 23.66 crore in FY25 from Rs 31.14 crore in FY24. Revenue from operations rose 16.6% YoY to Rs 468.25 crore in FY25 from Rs 401.7 crore in FY24. Total borrowings grew 2.7% YoY to Rs 617.32 crore in FY25 from Rs 601.19 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.