Brigade Hotel Ventures Raises Rs325 Cr from Anchor Investors Ahead of IPO

Brigade Hotel Ventures Ltd, hospitality business unit of Brigade Enterprises Ltd (BEL), has raised Rs.325 crore from 17 anchor investors before its initial public offering (IPO) opened on Thursday.

The company issued 3.6 crore equity shares at the upper price band of Rs. 90 per share, with 2.55 crore shares, 70.64 percent of the anchor portion, subscribed by six domestic mutual funds covering 12 schemes.

The IPO, a completely fresh issue with no offer for sale component, seeks to raise Rs. 760 crore. The price band has been fixed at Rs.85 to Rs.90 per equity share of face value of Rs.10. 

Key Highlights:

• Brigade Hotel Ventures raised Rs.325 crore from 17 anchor investors ahead of its Rs.760 crore IPO
• 70.64 percent of the anchor portion was subscribed by six domestic mutual funds across 12 schemes
• IPO proceeds will be used for debt repayment, land acquisition, and business expansion

Share allotment is likely to be finalized on July 29, and listing is to be done on July 31 on the BSE and NSE.

Bengaluru-based Brigade Hotel Ventures will use Rs.481 crore of the proceeds to retire debt, Rs.107.5 crore to purchase an undivided portion of land from parent company Brigade Enterprises, and the balance for business expansion, including inorganic growth opportunities and general corporate purposes.

Also Read: Inclusion of Sustainability in Indian Hospitality Schools

The size of the IPO was scaled down from the initially proposed Rs.900 crore after a Rs.126 crore pre-IPO placement. The company has filed its draft red herring prospectus (DRHP) with Sebi on 31st October 2024 and got the same approved by Sebi on 4th February, 2025.

With nine hotels currently operating in Bengaluru, Chennai, Kochi, Mysuru, and GIFT City with a total of 1,604 keys, Brigade aims to grow to 2,600 keys by FY 2028–29. Its hotels operate under brands such as Marriott, Accor, and InterContinental Hotels Group. The company plans to solidify its leadership position in South India's booming hospitality sector.