Brigade Hotel Ventures IPO: Brokerages view
Ventura Securities: SubscribeVentura Securities has recommended a ‘Subscribe’ rating to the IPO of Brigade Hotel Ventures Ltd (BHVL), citing the company’s strategy of combining brand-driven hospitality with real estate development expertise from its parent, Brigade Enterprises Ltd (BEL). The brokerage believes this positions BHVL well to capitalise on the growing demand in India’s premium and business hotel segments, while also strengthening its balance sheet and operational footprint through the IPO.
SBI Securities: Subscribe at cut-off price
SBI Securities also recommends subscribing to the issue, highlighting BHVL as a prominent hotel owner and developer primarily operating in South India. The company has demonstrated strong financial growth, with revenue, EBITDA, and PAT growing at CAGRs of 15.6%, 30.0%, and 73.2%, respectively, over FY23-FY25.
However, the company reported a negative reserves and surplus of ₹196 crore as of March 2025, owing to past accumulated losses. Of the total IPO proceeds of ₹760 crore, BHVL plans to use ₹468 crore for debt repayment. This will reduce the debt-to-equity ratio from 7.1x to below 1.0x and improve profitability by saving ₹45 crore in annual interest cost.
Going forward, trends in occupancy levels and Average Room Rates (ARR) will be key monitorables, the brokerage said. At the upper price band, BHVL is valued at a FY25 EV/EBITDA of 19.8x. SBI Securities has advised investors to subscribe to the issue at the cut-off price for the long term.
Anand Rathi: Subscribe for long term
Anand Rathi also recommends a long-term ‘Subscribe’, citing that at the upper price band, the company is valued at a P/E of 160x FY25 earnings, with an EV/EBITDA of 25.3x and a post-issue market cap of ₹3,418 crore. The brokerage believes the IPO is fully priced but sees long-term value in the company’s prospects.
Brigade Hotel Ventures IPO: Other details
The offering consists solely of a fresh issue valued at ₹759.6 crore, with a price band of ₹85 to ₹
90 per equity share. Investors can bid for a minimum of 166 shares and in multiples thereof.
Considering the upper end of the price band, the company is estimated to have a post-issue valuation of over ₹3,400 crore.
Since the offer does not include any Offer for Sale (OFS), the full proceeds will be utilised for the company’s growth and operational needs.
Out of the ₹759.6 crore being raised from the IPO, Brigade Hotel Ventures plans to allocate ₹468.14 crore towards debt repayment. An additional ₹107.52 crore will be used to acquire a share of land from its parent entity, Brigade Enterprises. The remaining will be used for strategic acquisitions and general corporate expenses.
As much as 75% has been set aside for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.
Brigade Hotel Ventures IPO: Anchor book
Brigade Hotel Ventures has garnered ₹324.7 crore from several institutional investors via anchor book launched on July 23.
Marquee institutional investors, including SBI Mutual Fund, Franklin India, 360 ONE Special Opportunities Fund, Axis MF, Motilal Oswal AMC, Bandhan MF, Edelweiss Trusteeship, Nuvama, and Edelweiss Life Insurance Company participated in the anchor book.
Company overview
The company is touted to be the second largest owner of chain-affiliated hotels and hotel rooms in South India. Brigade Hotels has a portfolio of nine operational hotels across Bengaluru, Chennai, Kochi, Mysuru and the GIFT City in Gujarat.
The company’s hotels are operated by global marquee hospitality companies such as Marriott, Accor, InterContinental Hotels Group, etc.
Brigade has a strong parentage of Brigade Enterprises, which is a real estate developer based out of Bengaluru. As of July 18, 2025, the total number of keys stands at 1,604.
JM Financial and ICICI Securities are acting as the book-running lead managers for the IPO, while Kfin Technologies Limited is the registrar.
The allotment for the Brigade Hotel Ventures IPO is expected to be finalised on July 29, and the shares will be listed on BSE, NSE with a tentative listing date fixed as July 31.
