Brigade Hotel Ventures IPO Details Unveiled by M.R. Jaishankar, Nirupa Shankar & Team
BILKULONLINE | Ahmedabad | 22 July 2025
Top Highlights of the IPO:
- IPO Opening Date: Thursday, July 24, 2025
- Closing Date: Monday, July 28, 2025
- Anchor Investor Bidding Date: Wednesday, July 23, 2025
- Price Band: ₹85 to ₹90 per equity share (Face Value ₹10)
- Issue Size: Fresh issue aggregating to ₹759.60 crore
- Minimum Bid Lot: 166 shares and in multiples thereafter
- Employee Discount: ₹3 per equity share for eligible employees
- Reservations:
- ₹75.96 million for employees
- ₹303.84 million for BEL shareholders
- Lead Managers: JM Financial Ltd and ICICI Securities Ltd
- RHP Link: https://bhvl.in/red-herring-prospectus/
Brigade Hotel Ventures Limited (BHVL), a wholly owned subsidiary of Brigade Enterprises Limited (BEL), is set to open its Initial Public Offering (IPO) on Thursday, July 24, and close on Monday, July 28, 2025, with the Anchor Investor Bidding opening on Wednesday, July 23, 2025.
The company has set a price band of ₹85 to ₹90 per equity share of face value ₹10 each, with a minimum application size of 166 equity shares.
The announcement was made at a media briefing in Ahmedabad on Tuesday, where M.R. Jaishankar, Executive Chairman, Nirupa Shankar, Managing Director, and Manoj Agarwal, Chief Operating Officer, represented BHVL. Also present were Prachi Malkan, Associate, Equity Capital Markets, JM Financial, along with other senior representatives of JM Financial and ICICI Securities, the Book Running Lead Managers to the Issue.
Purpose of the IPO
- The IPO comprises a fresh issue aggregating ₹759.60 crore, which will be primarily utilized for:
- Repayment/prepayment of borrowings of both BHVL (₹4136.9 million) and its material subsidiary SRP Prosperita Hotel Ventures Limited (₹544.5 million)
- Payment towards land acquisition from the promoter BEL, amounting to ₹1075.2 million
- Inorganic growth opportunities, strategic initiatives, and general corporate purposes
M.R. Jaishankar, Executive Chairman, Brigade Group while interacting with the media on Tuesday reiterated that “This IPO is a strategic step forward in strengthening the balance sheet and enabling long-term growth in the hospitality segment”.
“We see tremendous opportunities in the Indian hospitality sector, and this capital raise positions us to explore them aggressively through both organic and inorganic means,” added Nirupa Shankar, Managing Director.
Manoj Agarwal, COO, emphasized the company’s operational growth, saying, “Our existing hotel portfolio has shown strong resilience and performance, and the IPO will help us expand this momentum across new destinations.”
Speaking on behalf of JM Financial, Prachi Malkan noted, “Brigade Hotel Ventures Limited offers investors a unique blend of real estate-backed hospitality assets and a stable growth outlook.”
IPO Allocation Structure
- The issue is being made through the Book Building Process in accordance with SEBI regulations. The allocation breakdown is as follows:
- Qualified Institutional Buyers (QIBs): At least 75% of the net issue
- Non-Institutional Investors (NIIs): Up to 15%
- Retail Individual Investors (RIIs): Up to 10%
Additionally, special portions are reserved for BEL shareholders and eligible employees, who also receive a ₹3 discount per share.
Brigade Hotel Ventures has outlined significant expansion plans following its upcoming IPO. The company aims to add approximately 960 rooms to its existing portfolio of over 1,600 keys by FY28 and FY29, with a strong focus on the luxury segment.
These developments will include new properties such as a Grand Hyatt in Chennai, two Fairfield-branded hotels in Bengaluru, a luxury Ritz Carlton island resort in Kerala, and an Intercontinental hotel in Hyderabad.
Expansion Projects: Brigade Hotel Ventures plans to launch five new hotels by FY29, including a luxury beach resort in Chennai and two upper midscale hotels in Bengaluru.
The company also intends to develop a wellness resort in Vaikom, Kerala, and expand into western markets like Goa.
Strategic Use of IPO Proceeds: Proceeds from the IPO, which is priced at ₹85 to ₹90 per share, will be used to repay ₹468 crore in debt, acquire land in Hyderabad from the promoter firm Brigade Enterprises Limited (BEL), and fund strategic acquisitions or developments.
Approximately ₹90 crore has been allocated for an unidentified asset, potentially supporting inorganic growth through acquisitions.
Revenue Growth and Market Position: Brigade Hotel Ventures anticipates maintaining a 16–17% revenue growth in FY26, following a 16.6% increase in FY25. The company is focusing on balancing business and leisure travel at a 60 ratio while expanding across business, premium, and ultra-luxury segments.
Listing and Valuation Expectations: The IPO opens on July 24 and closes on July 28, 2025, with a listing expected on July 31 on both BSE and NSE. Brigade Hotel Ventures is targeting a market valuation of over ₹3,400 crore at the upper end of the price band.
Brigade Hotel Ventures’ IPO is being managed by two lead managers, JM Financial Limited and ICICI Securities Limited, who are serving as the book-running lead managers for the issue.
KFin Technologies Limited is the registrar for the IPO.
- Disclaimer: For complete IPO details, risk factors, and investment guidance, refer to the Red Herring Prospectus filed with SEBI and available at www.sebi.gov.in.
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