All you wanted to know about Brigade Hotel Ventures Ltd IPO

Brigade Hotel Ventures Ltd (BHVL) presents a rare opportunity to invest in India’s growing premium hospitality segment. Backed by its strong promoter Brigade Enterprises Ltd a well-known real estate developer BHVL has built a portfolio of high-end hotels in strategic metro locations like Bangalore, Chennai, Kochi, Mysuru, and GIFT City. These hotels operate under global marquee brands such as Sheraton, Holiday Inn, Mercure, and Four Points by Marriott.

With 9 operational hotels and over 1,600 rooms, the company benefits from rising domestic travel, business tourism, and event led hospitality demand. As the Indian tourism and hotel sector continues to rebound, BHVL’s asset heavy model combined with established brand tie ups could offer long term compounding benefits for patient investors. 

The Brigade Hotel Ventures IPO opens for subscription on July 24, 2025, and closes on July 28, 2025. The price band has been set between ₹85 to ₹90 per share, with a fresh issue of 8.44 crore shares, aggregating to a total issue size of ₹759.60 crore.

The issue does not include any offer for sale (OFS) component, which indicates that the proceeds will directly benefit the company and not existing shareholders. 

Retail investors can apply for a minimum of 1 lot, which consists of 166 shares. At the upper price band of ₹90, this translates to an investment of ₹14,940.

You can apply for up to 13 lots (₹1.94 lakh) under the retail quota. To increase your chances of allotment, it's advisable to apply at the cut off price. 

Brigade Hotel Ventures Ltd is engaged in owning, developing, and operating hospitality assets. It follows an asset ownership model, where it builds premium hotels and partners with global hospitality chains for operations and branding. This allows BHVL to focus on property development while leveraging the operational expertise and brand pull of giants like Marriott, Accor, and IHG.

Its current portfolio includes: 

• Sheraton Grand (Bangalore)
• Holiday Inn (Chennai & GIFT City)
• Grand Mercure (Mysuru)
• Four Points by Sheraton (Kochi) 

These hotels are strategically located within mixed use developments or business districts, providing strong occupancy potential and diversified demand drivers.

The primary objective of this IPO is to improve the company’s financial health and support expansion. Here’s how the proceeds will be utilized:

• ₹468.14 Cr will be used for repayment or prepayment of existing borrowings, including that of a subsidiary, SRP Prosperita Hotel Ventures.
• ₹107.52 Cr will go toward the purchase of the company’s land share in the Brigade Tech Gardens project from its parent, Brigade Enterprises Ltd.
• The remaining amount will be allocated for inorganic growth opportunities and general corporate purposes.

This strategic use of funds is expected to reduce the company’s debt burden, increase asset ownership, and create room for future growth.

The IPO allocation is structured to ensure broad investor participation:

Retail investors have been allotted around 80.18 lakh shares, and there is a ₹3 per share discount available for employees under the employee quota.

Key Strengths:

• Strong promoter backing from Brigade Enterprises Ltd, a reputed name in real estate and urban infrastructure.
• Strategic partnerships with global hotel chains like Marriott, IHG, and Accor ensure world class operations and branding.
• High occupancy potential across its portfolio, especially in metro cities and business hubs.
• Revenue growth from ₹356 Cr (FY23) to ₹470 Cr (FY25), indicating demand traction and post pandemic recovery.

Risks to Watch:

• High debt levels even after the IPO proceeds, with a debt to equity ratio of over 7.
• Cyclicality of the hospitality sector, which can be sensitive to economic downturns, seasonal demand, and global events.
• Valuation concerns, with a post issue P/E ratio of over 125x indicating premium pricing. 

Here’s a quick look at the important post issue dates:

Investors can expect the shares to be credited to their demat accounts by July 30, followed by listing on BSE and NSE on July 31.

Our Verdict: MAY APPLY (For Long Term Investors)

Brigade Hotel Ventures Ltd offers a unique play on India's fast-growing hospitality industry, backed by the strong legacy and execution capabilities of the Brigade Group. With strategic properties under international hotel brands and robust recovery trends in occupancy and ARR (average room rate), the company has strong long-term potential.

Valuation & Outlook

Brigade Hotel Ventures Ltd is the owner and developer of premium hotels in key Indian metros, mainly concentrated in South India. It is a wholly owned subsidiary of Brigade Enterprises Ltd (BEL), a leading real estate developer.

At the upper price band of ₹90, the IPO is valued at an EV/EBITDA of 20.79x, which is reasonable compared to listed hospitality peers. The company’s strong brand affiliations, stable revenue growth, and sector tailwinds make it a compelling long-term opportunity.

We recommend a “Subscribe for Long Term” rating for this IPO. Investors looking to diversify into the hospitality sector with a long-term view may consider participating in this offer.

Q1. When will the Brigade Hotel Ventures IPO open and close?
The IPO opens on July 24 and closes on July 28, 2025.

Q2. What is the minimum investment amount?
You need to invest in 1 lot (166 shares), which amounts to ₹14,940 at the upper price band.

Q3. Is this a fresh issue or OFS?
It’s a 100% fresh issue, meaning all proceeds go to the company.

Q4. When will the allotment and listing happen?
Allotment on July 29 and listing on July 31, tentatively.

Q5. Is there any discount or employee quota?
Yes, a ₹3 discount is available for employees applying under the employee quota

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before investing.