Brigade Hotel IPO Is Open Now

Mumbai, July 24, 2025: The ₹759 crore Initial Public Offering (IPO) of Brigade Hotel Ventures Ltd opened today. In the first two hours it received .07 times subscription applications.

Retail Investors Lead Early Charge; Shareholders Also Keen

Retail investors have been the standout category, with 33% of their reserved quota already subscribed within the first few hours of bidding. This indicates strong initial interest from individual investors in Brigade Hotel Ventures.

Shareholders of the parent company, Brigade Enterprises Ltd, also showed a visible interest, having bid for over 2.78 lakh shares, representing 8% of their dedicated portion. The employee reserved category also saw some early activity, with 5% of its quota subscribed, often with a preference for the cut-off price.

Overall, cumulative bids across all investor categories reached 36.67 lakh shares, resulting in an overall subscription of 0.07 times or 7% as of 10:22 AM. While Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) are yet to place significant bids, the early retail traction is a positive sign.

Category-Wise Subscription Status (As of 10:45 AM, July 24)

Bidding Activity Concentrated Towards Favourable Price Points

Exchange data reveals that demand has largely clustered around the cut-off price and the lower end of the price range. This often suggests that retail investors, in particular, are looking for a potentially more attractive entry point or are comfortable with the valuation at these levels. For instance, a significant 27,65,726 bids were placed specifically at the cut-off price.

Key Details for Retail Investors (IPO Details at a Glance):

Here are the key details for retail investors regarding the Brigade Hotel Ventures IPO:

• IPO Open-Close: The IPO opened today, 24th July 2025, and will close on 28th July 2025.
• Price Band: The shares are offered within a price band of ₹85 to ₹90 per share.
• Lot Size: Retail investors can bid for a minimum of 166 shares.
• Minimum Investment: Based on the upper end of the price band (₹90), the minimum investment for a retail investor would be ₹14,940 (166 shares * ₹90).
• Issue Size: The total size of the IPO is ₹759 crore.
• Listing Date: The shares are expected to be listed on 31st July 2025.

IPO Details at a Glance

Company Financials (Restated Consolidated)

Brigade Hotel Ventures Ltd. has shown a consistent increase in its revenue over the past three fiscal years. For the year ended 31st March 2025, the company reported a revenue of ₹470.68 crore, up from ₹404.85 crore in 2024 and ₹356.41 crore in 2023.

In terms of profitability, the company has moved into a positive net profit territory. The Profit After Tax (PAT) for the year ended 31st March 2025 stood at ₹23.66 crore. This follows a profit of ₹31.14 crore in 2024, a significant turnaround from a loss of ₹3.09 crore reported in 2023.

The company’s assets have also steadily grown, reaching ₹947.57 crore as of 31st March 2025, compared to ₹886.78 crore in 2024 and ₹840.67 crore in 2023. Total borrowings (liabilities) have seen some fluctuations but stood at ₹617.32 crore as of 31st March 2025, slightly higher than ₹601.19 crore in 2024 but lower than ₹632.50 crore in 2023. The company’s Net Worth has also seen healthy growth, increasing from ₹33.81 crore in 2023 to ₹58.74 crore in 2024 and further to ₹78.58 crore by 31st March 2025.

Key Performance Indicators (KPIs)

As of 31st March 2025, Brigade Hotel Ventures Ltd. presents several key performance indicators. The Return on Capital Employed (ROCE) stands at 13.62%, while the Return on Net Worth (RoNW), which reflects profitability for shareholders, is 30.11%. The Debt/Equity ratio is reported at 7.40.

In terms of operational efficiency, the PAT Margin is 5.03%, and the EBITDA Margin is 35.45%. For valuation metrics, the Price to Book Value is 32.26, and the Earnings Per Share (EPS) (Pre-IPO) is ₹0.72, leading to a Pre-IPO Price/Earnings (P/E) ratio of 125x.

Detailed IPO Analysis For Retail Investors

• Revenue Growth: The company reported a significant rise in revenue from Rs. 356.4 crore in FY23 to Rs. 470.7 crore in FY25, indicating a robust recovery and expansion in its hospitality operations.
• Profitability Turnaround: Brigade Hotel Ventures turned profitable in FY25, posting a PAT of Rs. 23.66 crore after recording a loss of Rs. 3.09 crore in FY23, reflecting improved cost management and stronger demand.
• High Leverage: The debt-to-equity ratio stands at 7.4, signalling heavy reliance on borrowed funds. This could pressure margins if interest rates rise or cash flows dip.
• Valuation Concerns: At the upper price band of Rs. 90, the stock is priced at a steep P/E multiple of 125x, which appears expensive compared to industry peers, especially given its modest net profits.
• Use of IPO Proceeds: A significant portion of the proceeds (Rs. 600 crore) is earmarked for debt repayment, which should improve the balance sheet but may not immediately drive revenue or profit growth.

How To Apply To The IPO?

Retail investors can apply for the Brigade Hotel Ventures IPO using the following methods:

• Through ASBA (Applications Supported by Blocked Amount): Log in to your net banking account, go to the IPO section, select “Brigade Hotel Ventures Ltd,” enter lot size (minimum 166 shares), bid price (cut-off or within ₹85-₹90), and submit. Funds will be blocked in your account until allotment.
• Via UPI Through a Broker App: Use your broking app. Search for the IPO, fill in your bid details, and enter your UPI ID. Approve the UPI mandate in your UPI app (like PhonePe, Google Pay, etc.) to complete the application.
• Minimum Investment: ₹14,940 (166 shares × ₹90 per share, assuming bidding at the upper price band).
• Bidding Window: Open from July 24 to July 28, 2025. Investors should apply before 5 PM on the closing day, though brokers may set earlier internal cutoffs.
• Allotment and Listing: IPO allotment is expected on July 29, 2025, and shares will likely list on July 31, 2025.

What Lies Ahead For Retail Investors And The IPO?

The IPO remains open for bidding until 28th July, offering retail investors ample time to participate. It’s crucial for those applying via UPI to note the cut-off time for UPI mandate acceptance, which is 5 PM on the closing day. While large institutional bids typically come in during the latter half of the subscription period, the early interest from retail and shareholder categories provides a foundational layer of demand. All eyes will now be on how these segments sustain their momentum and how QIB participation shapes up as the issue progresses towards its final days.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations