IPO Details
Issue Opening Date: July 24, 2025
Issue Closing Date: July 28, 2025
Issue Size: ₹ 759.60 Cr (@ upper price band of ₹90)
Type: Fresh Issue – ₹ 759.60 Cr
Our View: Long Term Investment for High Risk Investors
Price Band: ₹ 85 to ₹90 per Equity Share
Employee Discount: ₹3 per Shar
Lot Size: 166 Shares & multiples thereafter
Minimum Application Amount: ₹ 14,940 (166 Shares)
Maximum Application Amount: ₹ 1,94,220 (2,158 Shares)
Big HNI: ₹10,00,980 (11,122 Shares)
Company Overview
Brigade Hotel Ventures is an owner and developer of hotels in key cities across India, primarily in South India. As of March 31, 2025, they are the 2nd largest owner of chain-affiliated hotels and hotel rooms in South India among major private hotel asset owners, with 9 operating hotels totaling 1,604 keys.
Their hotels, located in Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, are operated by global hospitality brands such as Marriott, Accor, and InterContinental Hotels Group. These properties span across upper upscale, upscale, upper midscale, and midscale segments. The company is a subsidiary of Brigade Enterprises Ltd. (BEL), a prominent real estate developer in India.
Future plans include developing a luxury beach resort in Chennai, two upper midscale hotels in Bengaluru, and a luxury InterContinental hotel in Hyderabad. Their business model involves owning or leasing hotel assets while engaging top-tier operators for hotel management.
Key Highlights
Strategically located award-winning hotels with diversified offerings in prime South Indian cities
Strong focus on asset management for improved operational efficiency
Commitment to environmental, social, and governance (ESG) principles
Strong backing from the Brigade Group
Well-positioned to benefit from industry growth in tourism and hospitality
Objects of the Issue
Repayment/prepayment/redemption of certain borrowings:
a) Company – ₹413.69 Cr
b) Subsidiary SRP Prosperita Hotel Ventures Ltd – ₹54.45 Cr
Purchase of undivided share of land from BEL – ₹107.51 Cr
Pursue inorganic growth through acquisitions and other strategic initiatives
General corporate purposes
Our View
Incorporated in 2016, Brigade Hotels benefits from the strong brand equity and real estate expertise of Brigade Enterprises Ltd. Its partnerships with internationally renowned hotel brands like Marriott, Accor, and InterContinental offer credibility and customer trust.
The company’s FY25 average occupancy of 76.76% outperformed the industry average of 64.5%. The number of keys increased from 1,474 in FY23 to 1,604 in FY25. Locations in commercial hubs and projects in GIFT City further strengthen its market position. The company is known for high guest satisfaction and operational excellence.
Risks include intense competition, geographic concentration, dependency on a few properties for revenue, high finance costs, and reliance on third-party hotel operators. Financially, revenue grew at a 16% CAGR from FY23–FY25, with an EBITDA margin of 35.45% but a thin PAT margin of 5% in FY25. ROCE was 16.27%. The IPO is priced at a P/E of 128x versus the industry average of ~91.43x, suggesting aggressive valuation.
While the company has ambitious expansion plans and will benefit from the growth of the tourism industry, the high valuation and financial volatility make it more suitable for high-risk investors with a long-term horizon.
Brief Financials
| PARTICULARS |
₹ in Million |
| FY ’25 |
FY ‘24 |
FY ‘23 |
| Total Income |
4,706.80 |
4,048.50 |
3,564.10 |
| Total Expenditure |
4,261.70 |
3,727.70 |
3,719.50 |
| EBITDA |
1668.70 |
1,446.10 |
1,139.80 |
| Profit before Tax |
445.10 |
320.80 |
(45.40) |
| Profit after Tax |
236.60 |
311.40 |
(30.90) |
| E.P.S. (Diluted) |
0.72 |
0.88 |
(0.14) |
| P/E (x) (Diluted) |
125 |
- |
- |
| RONW (%) |
30.11 |
53.01 |
(9.14) |
PRICE CHART (@ ₹ 90) (Retail Category)
| LOT SIZE |
| Amount |
| 166 |
14,940 |
| 332 |
29,880 |
| 498 |
44,820 |
| 664 |
59,760 |
| 830 |
74,700 |
| 996 |
89,640 |
| 1,162 |
104,580 |
| 1,328 |
119,520 |
| 1,494 |
134,460 |
| 1,660 |
149,400 |
| 1,826 |
164,340 |
| 1,992 |
179,280 |
| 2,158 |
194,220 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
2,324 |
209,160 |
| Big HNI |
11,122 |
1,000,980 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
29/7/2025 |
| Initiation of refunds/unblocking ASBA Fund |
29/7/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
30/7/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
31/7/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
