Brigade Hotel Ventures made a grim debut at the Street with 11% discount over its issue price. It's also worth noting that the stock listed amid a volatile time after the US imposed 25% tariff on India and threatened penalty for Russian oils.
On National Stock Exchange, the stock started trading at Rs 81.0 apiece at 10:00 a.m. On BSE, the scrip started trading at Rs 82 apiece.
It was a mainboard initial public offer which saw nearly 4.5 times subscription on the third and final day of bidding on Monday. The IPO attracted bids for more than 22.95 crore shares against 5.12 crore shares on offer, as per the NSE data.
The Qualified Institutional Buyers (QIBs) booked their quota 5.42 times, while the Non-Institutional Investors' (NIIs) category was subscribed 1.92 times. The retail portion of the IPO was subscribed 6.4 times, while the employees booked their segment 0.94 times.
Brigade Hotel Ventures is in the hotel development business. It has a major presence in southern states. The company has proposed to utilise the IPO proceeds to clear debt and pursue inorganic growth.
Brigade Hotel Ventures will utilise the proceeds to repay outstanding loans taken by the company and its subsidiary RP Prosperita Hotel Ventures Ltd.
The funds will also be used toward purchasing an undivided share of land from its promoter, BEL, and for other general corporate purposes.
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