Brigade Hotel Ventures IPO Subscribed 1.19 Times On Day 2
The price band has been fixed at Rs 85 to Rs 90 per share.
The initial share sale of Brigade Hotel Ventures Ltd. received 1.19 times subscription on the second day of bidding on Friday. The company's initial public offering got bids for 6,09,28,972 shares against 5,11,93,987 shares on offer, according to data available with the NSE.
Retail Individual Investors part got subscribed 4.65 times while the portion for non-institutional investors received 98 per cent subscription. The Qualified Institutional Buyers category fetched 8 per cent subscription.
Brigade Hotel Ventures Ltd. on Wednesday raised Rs 325 crore from anchor investors.
The IPO will conclude on July 28. The price band has been fixed at Rs 85 to Rs 90 per share.
At the upper end of the price band, the company is valued at over Rs 3,400 crore.
Brigade Hotel Ventures' IPO is entirely a fresh issue of equity shares worth Rs 759.6 crore with no offer-for-sale component.
Proceeds from the issue to the tune of Rs 468.14 crore will be used for the payment of debt, Rs 107.52 crore will be utilised for the purchase of an undivided share of land from the promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.
Brigade Hotel Ventures Ltd. is a subsidiary of Bengaluru-based real estate company Brigade Enterprises Ltd.
BEL entered into the hospitality business in 2004 with the development of its first hotel, Grand Mercure Bangalore, which commenced operations in 2009.
The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys.
The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group.
JM Financial and ICICI Securities are the book-running lead managers to the issue.
