Upcoming IPO: Brigade Hotel Ventures gets SEBI nod to launch ₹900 crore IPO

Upcoming IPO: Brigade Hotel Ventures Limited, which ranks as the second largest owner of chain-affiliated hotels and rooms in South India among significant private hotel asset holders, has obtained approval from the Securities and Exchange Board of India (SEBI) for its planned initial public offering.

Brigade Hotel Ventures is a prominent player in the hospitality sector, focusing on the development and ownership of hotels in key cities throughout South India. As a wholly-owned subsidiary of Brigade Enterprises Limited, one of India's leading real estate developers, Brigade Hotel Ventures boasts a strong reputation for delivering exceptional hospitality experiences across various segments.

Over the years, the company has successfully expanded its portfolio, increasing its total number of hotel keys from 1,474 as of March 31, 2022, to 1,604 keys, as reported in the Draft Red Herring Prospectus (DRHP). This growth reflects their commitment to catering to the evolving needs of travelers, positioning them as a significant player in the competitive hospitality landscape.

IPO Details

The company’s initial public offering includes a fresh issue of Equity Shares with a face value of ₹10 each, totaling up to ₹900 crores.

The company plans to use the net proceeds from the issuance for several key purposes. These include the repayment or prepayment, either fully or partially, of certain outstanding borrowings incurred by the company and its material subsidiary, SRP Prosperita Hotel Ventures Limited. Additionally, part of the funds will be allocated to purchase an undivided share of land from its promoter, Brigade Enterprises.

The company is also looking to pursue inorganic growth through potential acquisitions and other strategic initiatives, along with addressing general corporate purposes.

The issue's Book Running Lead Managers are ICICI Securities Limited and JM Financial Limited.

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