The Brigade Hotel Ventures IPO opened for subscription on 24 July 2025, and is attracting attention from investors across India. This IPO offers an opportunity to invest in the hospitality segment backed by a well-known real estate brand – Brigade Group.
In this post, I’ll share all important details about the IPO including price band, lot size, GMP, financials, and risk factors. This is purely for educational purposes based on available data.
IN THIS ARTICLE
Brigade Hotel Ventures IPO Overview
Here is a quick overview of the IPO:
| Particulars | Details |
|---|---|
| IPO Opening Date | 24 July 2025 |
| IPO Closing Date | 28 July 2025 |
| Price Band | ₹85 – ₹90 per share |
| Lot Size | 166 shares |
| Minimum Investment | ₹14,940 |
| Total Issue Size | ₹759.6 Crore |
| Type of Issue | Fresh Issue |
| Listing Exchanges | BSE, NSE |
| Tentative Listing Date | 31 July 2025 |
| Anchor Investor Portion | ₹324.7 Crore |
| Registrar | KFin Technologies |
| Lead Managers | JM Financial, ICICI Securities |
About the Company
Brigade Hotel Ventures Limited (BHV) is a hospitality-focused company promoted by Brigade Enterprises, a reputed real estate firm in South India.
It operates 9 premium hotels across cities like:
- Bengaluru
- Chennai
- Kochi
- Mysuru
- GIFT City (Gujarat)
Most of their hotels operate under international brands such as Marriott, Accor, and IHG.
Total Room Keys: 1,604
Occupancy Rate (FY25): Around 76–77%
Main Revenue Contributor: 63% revenue comes from Bengaluru region
Brand Dependency: Over 44% of revenue comes from Marriott-branded properties
Business Strategy and Expansion
The company plans to expand its portfolio to 14 hotels with over 2,500 keys by FY29. Upcoming projects include:
- Grand Hyatt Chennai
- Ritz-Carlton wellness resort in Kerala
- Properties in Goa, Tirupati, and Bengaluru
The hospitality industry is seeing strong post-pandemic recovery, and Brigade Hotel Ventures is aiming to capitalise on this demand surge.
Financial Performance
| Financial Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EBITDA Margin |
|---|---|---|---|
| FY23 | ₹350 | ₹31 | ~33% |
| FY24 | ₹409 | ₹27 | ~34% |
| FY25 | ₹468 | ₹23.7 | ~35.5% |
- The company’s revenue is growing, but net profit is slightly declining
- EBITDA margins are stable and above industry average
- High operational costs and interest payments impact net profits
IPO Objectives
The company plans to use the IPO proceeds mainly for:
- Debt repayment – ₹468 Crore
- Land acquisition from Brigade Enterprises – ₹107.5 Crore
- General corporate purposes and future expansion
Reducing debt will improve the company’s financial strength and allow better focus on growth.
Brigade Hotel Ventures IPO Grey Market Premium (GMP)
As per latest sources, the Brigade Hotel Ventures IPO GMP (Grey Market Premium) is in the range of ₹11 to ₹16.
This implies a possible listing gain of 10% to 18% over the upper price band of ₹90.
Note: GMP is not an official indicator and may change daily. It reflects market sentiment but should not be the only basis for investment.
Strengths of the Company
- Strong backing from Brigade Group
- Experienced management in real estate and hospitality
- Operates under global hotel brands like Marriott and Accor
- High occupancy rates and premium property locations
- Expansion into tourist and pilgrimage destinations
Risks and Concerns
- High valuation: P/E ratio over 125× which is above industry average
- Net profit declining despite revenue growth
- Debt burden still exists after IPO
- Heavy dependence on Bengaluru region for revenue
- Competition from established hospitality brands and newer players
Peer Comparison
| Company | P/E Ratio | Occupancy Rate |
|---|---|---|
| Brigade Hotel Ventures | ~125x | ~76% |
| Lemon Tree Hotels | ~57x | ~70% |
| Indian Hotels (Taj) | ~68x | ~68% |
While Brigade’s occupancy rate is strong, its valuation is much higher compared to peers. Investors should be cautious and evaluate long-term value.
Expert Views
Some brokerages have provided early reviews:
- Ventura Securities: Positive long-term view
- Kunvarji Finstock: Recommend with caution
- Analysts see value in asset base and brand tie-ups but raise concerns over debt and high valuation
Should You Apply?
This IPO suits those investors who:
- Prefer long-term holding
- Believe in the growth of hospitality sector
- Can handle valuation risks
- Are not looking for instant listing gains
If you are investing based on short-term GMP or speculative motives, it may be better to wait and watch.
Conclusion
The Brigade Hotel Ventures IPO brings a premium hospitality player into the market with strong brand partnerships and a solid hotel portfolio. It has growth potential, especially in tourist locations, but comes with valuation concerns and reliance on few geographies.
Investors should carefully assess their risk appetite and investment goals before participating.
Disclaimer: This article is only for educational and informational purposes. It is not a recommendation to buy, sell or invest in any securities. Please consult a financial advisor before making any investment decisions
