Brigade Hotel Ventures garners ₹126 crore via pre-IPO placement

Brigade Hotel Ventures Ltd., owner and developer of hotels in South India, mopped up ₹126 crore in a pre-IPO placement round.The company issued 1.40 crore equity shares to 360 ONE Alternates Asset Management, priced at ₹90 per share, in consultation with the lead bankers. This transaction represents 4.74% of the company’s pre-offer share capital.

The proposed initial public offering (IPO) is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component. According to the DRHP, the company’s IPO comprised of a fresh issue of equity shares worth ₹900 crore. This has now been reduced to ₹

774 crore.
Proceeds from the issue worth ₹481 crore will be utilised for debt repayment. This includes ₹412 crore for the company itself and ₹69 crore for its material subsidiary, SRP Prosperita Hotel Ventures.
Additionally, ₹107.519 crore has been earmarked for the payment of consideration to purchase an undivided share of land from the promoter, BEL. The remaining proceeds will be directed towards pursuing inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises Ltd (BEL), which is one of the leading Indian real estate developers in India.

BEL entered the hospitality business in 2004, with the development of its first hotel — Grand Mercure Bangalore, which commenced operations in 2009.

The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys.

The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group.

JM Financial and ICICI Securities are the book-running lead managers to the issue.