Brigade Hotel Ventures raises ₹126 cr ahead of IPO

Brigade Hotel Ventures Limited has raised Rs 126 crore in a pre-IPO placement round. The company has issued 1.4 crore equity shares to 360 ONE Alternates Asset Management Limited at a price of ₹90 per share (including a premium of ₹80). The allotment represents 4.74 per cent of the company’s pre-offer share capital.

Following this pre-IPO round, the size of the company’s upcoming IPO has been reduced to ₹774 crore, down from the originally proposed ₹900 crore.

The net proceeds from the fundraising will be used towards debt reduction and strategic initiatives. An estimated ₹481 crore will be allocated for the repayment or prepayment, either fully or partially, of certain outstanding borrowings. This includes ₹412 crore for the company itself and ₹69 crore for its material subsidiary, SRP Prosperita Hotel Ventures Limited. Additionally, ₹107.519 crore is earmarked for the payment of consideration to purchase an undivided share of land from the promoter, BEL. The remaining proceeds will be directed towards pursuing inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purpose.

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. These properties are managed by hospitality brands such as Marriott, AAPC India Hotel Management Private Limited, and InterContinental Hotels Group (India) Private Limited and span the upper upscale, upscale, upper midscale, and midscale segments.

JM Financial Limited and ICICI Securities Limited are the Book Running Lead Managers to the issue.

This development follows increased activity in the hospitality sector, including the IPO of Schloss Bangalore (the parent of the Leela brand) in May, and public offerings by Juniper Hotels and Ventive Hospitality last year, alongside the demerger of ITC Hotels from its parent company.

(With inputs from bl intern Nethra Sailesh)

Published on July 4, 2025