Upcoming IPO: Hospitality player Brigade Hotel Ventures files DRHP; details

Upcoming IPO: Brigade Hotel Ventures, a leading hospitality player in South India, is set to go public, having announced that it has filed its Draft Red Herring Prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI). The company’s initial public offering (IPO) comprises a fresh issue of equity shares with a face value of Rs 10 each, aggregating up to Rs 900 crore.

 

In the DRHP, the company stated that it proposes to utilize the net proceeds from the issue for the repayment or prepayment, in full or in part, of certain outstanding borrowings availed by (i) the company; and (ii) its material subsidiary, SRP Prosperita Hotel Ventures Limited; for the payment of consideration towards the purchase of an undivided share of land from its promoter, BEL; and for pursuing inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes. 

KFin Technologies is the registrar for the public issue of Brigade Hotel Ventures.

 

The company stated that the price band will be decided in consultation with the Book Running Lead Managers and will be included in the Red Herring Prospectus.

 

JM Financial, and ICICI Securities are the Book Running Lead Managers for the IPO. 

Brigade Hotel Ventures is the owner and developer of hotels in key cities across South India, making it the second-largest owner of chain-affiliated hotels and rooms in the region (comprising the states of Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and the Union territories of Lakshadweep, Andaman and Nicobar Islands, and Pondicherry) among major private hotel asset owners as of June 30, 2024. The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka), and GIFT City (Gujarat), with 1,604 keys. The hotels are operated by global marquee hospitality companies such as Marriott, Accor, and InterContinental Hotels Group, and are in the upper upscale, upscale, upper-midscale, and midscale segments.