Brigade Hotel Ventures Ltd.'s initial public offering was subscribed 4.48 times on the final day of bidding on Monday. The IPO was subscribed 1.19 times on the second day of bidding on Friday.
The price band for the Rs 759.6-crore IPO was set between Rs 85 and Rs 90 per share. The company will raise the approved funds via a fresh issue of shares with no offer for sale component available, as per the red herring prospectus.
Brigade Hotel Ventures is a wholly-owned subsidiary of Bengaluru-based Brigade Enterprises, a leading real estate developer that owns and operates hotels across major Indian cities.
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.
JM Financial Ltd. and ICICI Securities Ltd. are the book-running lead managers of the offering and KFin Technologies Ltd. is the registrar.
Shares of Brigade Hotel Ventures will debut on the BSE and National Stock Exchange.
IPO Details
Issue opens: July 24.
Issue closes: July 28.
Issue price: Rs 85-90.
Fresh issue: Rs 759.6 crore.
Offer for sale: NA
Lot size: Minimum 166 shares.
Subscription Status: Day Three
The issue has been subscribed 4.48 times as of 7:00 p.m.
Qualified institutional buyers: 5.42 times.
Non-institutional buyers: 1.92 times.
Retail investors: 6.40 times.
Portion reserved for employees: 0.94 times.
Reservation portion shareholder: 3.28 times.
IPO GMP
The grey market premium for Brigade Hotel Ventures IPO was nil, as of 9:02 p.m. on July 28, according to InvestorGain. That implies a potential flat listing at around Rs 90 per share.
GMP or grey market price is not an official indicator and is based on market speculation.
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