About
Brigade Hotel Ventures Limited (BHVL) is the hospitality arm of the Brigade Group, incorporated in 2016 and headquartered in Bengaluru, focused on owning, developing and operating upscale and upper-midscale hotels across India’s high-growth southern markets. The company has built a diversified portfolio of nine operating hotels with 1,604 keys spread across Bengaluru, Chennai, Mysuru, Kochi and GIFT City, Ahmedabad, managed under marquee international brands including Sheraton Grand and Four Points by Sheraton (Marriott), Grand Mercure and ibis Styles (Accor), and Holiday Inn / Holiday Inn Express (IHG), ensuring strong global distribution, loyalty-programme access and premium service standards. In addition to room revenue, the hotels feature 30 restaurants and bars, extensive MICE facilities and curated wellness offerings that drive a balanced mix of corporate, leisure and F&B income streams, while being backed by its promoter Brigade Enterprises Limited with plans to accelerate growth through a five-hotel development pipeline and selective acquisitions. The company is raising capital through an Initial Public Offering (IPO) with an issue size of ₹7,596 million through a fresh issue of equity shares of face value ₹10 each, structured as a 100% Book-Built issue that is entirely a fresh issue with no Offer for Sale (OFS) component, meaning all proceeds will go directly to the company rather than to existing shareholders selling their stakes.
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IPO Details
| Issue Price | 85 - 90 |
|---|---|
| Minimum Lot Size Retail | 166/Lot (14,940) |
| Maximum Lot Size Retail | 13 Lots (1,94,220) |
| S-Minimum Lot Size HNI | 14 Lots (2,09,160) |
| S-Maximum Lot Size HNI | 66 Lots (9,86,040) |
| Issue Type | Fresh Issue |
| Issue Size | 8,44,00,000 shares |
(aggregating up to ₹759.60 Cr)|
|Employee Discount|Rs. 3|
IPO Timeline
| Issue Period | 24th July - 28th July 2025 |
|---|---|
| Allotment Date | 29th July 2025 |
| Refund Initiation Date | 29th July 2025 |
| Demat Transfer Date | 30th July 2025 |
| Listing Date | 31th July 2025 |
Key Strengths
- Strong Brand Portfolio & Strategic Partnerships: Portfolio of 9 operating hotels (1,604 keys) operated under marquee international brands including Sheraton Grand, Four Points by Sheraton (Marriott), Grand Mercure, ibis Styles (Accor), and Holiday Inn/Holiday Inn Express (IHG), ensuring strong global distribution and premium service standards.
- Diversified Revenue Streams: Balanced income mix from rooms (62.12%), food & beverage operations (32.75%), and other hospitality services, with 30 restaurants and bars, extensive MICE facilities, and wellness offerings across the portfolio.
- Strategic Geographic Presence: Well-positioned hotels across high-growth southern markets including Bengaluru, Chennai, Mysuru, Kochi, and GIFT City Ahmedabad, with strong presence in key business and leisure destinations.
- Strong Financial Performance: Revenue from operations of ₹4,682.50 million in Fiscal 2025 with restated profit of ₹236.60 million, showing recovery and growth trajectory post-COVID-19 pandemic.
- Experienced Promoter Support: Backed by Brigade Enterprises Limited, a well-established real estate and hospitality group, providing strong promoter support and development pipeline of 5 additional hotels planned.
Key Risk Factors
- Heavy Dependence on Hotel Operators: Critical reliance on hotel43.81% of revenue), Accor, and InterContinental Hotels Group. Termination or non-renewal of these agreements could severely impact business operations and brand positioning.
- Geographic Revenue Concentration: Significant dependence on Bengaluru market (63.21% of revenue from operations in Fiscal 2025) and three key hotels contributing 62.02% of total revenue, creating vulnerability to local market conditions and specific asset performance.
- High Debt Burden: Total borrowings of ₹6,173.20 million as of March 31, 2025, with debt equity ratio of 7.40 times, requiring significant cash flows for debt servicing and limiting operational flexibility.
- Execution Risk on Expansion Plans: Plans to develop 5 additional hotels face inherent development risks including construction delays, cost overruns, regulatory approvals, and dependency on third-party contractors, with history of delays (ibis Styles Mysuru delayed over 2 years due to COVID-19).
- High Employee Attrition & Operational Challenges: Attrition rate of 58.19% in Fiscal 2025 with 1,191 permanent employees, creating operational disruption risks, while recurring operational expenses and F&B quality maintenance (32.75% of revenue) pose ongoing management challenges.
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Brigade Hotel Ventures Limited – Key Financial Metrics
| Metric | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|
| Revenue from Operations (₹ Lakhs) | 46,825 | 40,170 | 35,022 |
| Operating Profit Margin (%)* | 35.6% | 36.0% | 32.6% |
| Profit After Tax – PAT (₹ Lakhs) | 2,366 | 3,114 | – 309 |
| Cash & Cash Equivalents (₹ Lakhs)† | – 2,388 | 395 | – 1,348 |
| Return on Capital Employed – ROCE (%)‡ | 16.4% | 16.1% | 14.4% |
| Return on Equity – ROE (%)§ | 30.1% | 53.0% | – 9.1% |
| Earnings Per Share – EPS (₹) | 0.72 | 0.88 | – 0.14 |
IPO FAQs
What is an IPO and how does it work?
An IPO (Initial Public Offering) is when a private company offers its shares to the public to raise capital and becomes publicly listed. In India, companies list their shares on exchanges (NSE/BSE) through IPOs. During the IPO subscription period, investors bid for shares via a broker or trading app. After the IPO closes, shares are allotted to investors and start trading on the stock market.
How to apply for an IPO with Zerodha or Upstox?
You can apply through online brokers like Zerodha or Upstox. For example, Zerodha’s Kite platform lets you apply via UPI or ASBA: log in to Kite, go to Bids → IPO → Apply, select the IPO, enter your bid quantity and price, submit, and approve the UPI mandate. Upstox works similarly: log in to the Upstox app or website, find the IPO section, select the IPO, enter lot size and bid price, input your UPI ID, and authorize the payment. Make sure your Demat account and linked bank account are ready before applying.
How is an IPO allotted to investors?
IPO shares are allocated by category. Typically, Indian IPOs have quotas for Retail, High Net Worth Individuals (HNIs), and Qualified Institutional Buyers (QIBs). Retail and HNI allotments usually use a lottery if oversubscribed, whereas QIBs get prorata allotment. For example, if demand from retail investors far exceeds available shares, a lottery (draw) decides who gets shares. Unsuccessful applicants simply get their blocked funds released.
What is GMP (Grey Market Premium) in an IPO?
GMP stands for Grey Market Premium. It is the unofficial premium above the IPO price that shares trade for in the grey market before listing. For example, if an IPO is priced at ₹100 and grey market traders are paying ₹120 per share, the GMP is ₹20. A positive GMP indicates strong demand and suggests potential listing gains, but remember this market is unregulated and unofficial, so GMP is only an indicative signal, not a guarantee.
What is the IPO calendar and where can I find upcoming IPOs?
An IPO calendar is a schedule of upcoming IPO issues (opening/closing dates, sizes, etc.). In India, IPO calendars are published on financial websites and exchange portals. For instance, sites like Chittorgarh or IPOWatch list upcoming IPOs and their timelines. You can also check NSE or BSE official websites under “New Listings” or “Upcoming Issues” for authoritative updates.
What are IPO listing gains and how do they work?
Listing gain is the profit an investor makes if a stock’s listing (opening) price is higher than its IPO issue price. In other words, if you bought at ₹150 and the stock opens at ₹200 on day one, your listing gain is ₹50 per share. Many investors apply to IPOs hoping for such gains. However, share prices can also fall on listing day if demand is weak, so listing gains are not guaranteed.
How does an IPO give profit to investors?
Investors profit from IPOs mainly in two ways: listing gains and longterm growth. On listing day, a share price often jumps if demand is strong, yielding an immediate gain. Over the longer term, if the company performs well, investors can earn from stock price appreciation. As one analysis notes, IPO investors aim for “longterm stock growth or immediate listing gains”. Always remember that IPOs carry risk, so profits depend on both market demand and company fundamentals.
Which IPO is best to buy today?
There’s no one “best” IPO to buy; it depends on the company’s fundamentals and market sentiment. Indian investors typically check the IPO’s prospectus, valuation, and oversubscription levels. The grey market premium (GMP) can give a clue: a high GMP suggests strong demand and potential listing gains. For example, if a GMP is ₹30 on a ₹100 issue, investors expect about a ₹30 upside on listing. However, always do your research on the business model and pricing. High demand or a big GMP doesn’t guarantee a profitable investment, so choose IPOs carefully.
Are IPOs safe investments?
IPOs can be profitable but come with risk. Often a heavily oversubscribed IPO will see a big price jump on day one (strong initial demand). However, many factors affect postlisting performance. As noted, “a high oversubscription does not always mean strong postlisting performance”. New IPO companies may be volatile initially, so share prices can fall if market conditions change. Retail investors should be cautious: IPO gains can be high, but IPOs also carry uncertainties and require strong risk tolerance.
How to check IPO allotment status?
After the allotment date, you can check your IPO status on exchange or registrar websites. For example:
- BSE: Go to BSE’s “Application Status Check”, select Equity, pick the IPO and enter your PAN or application number.
- NSE: Visit NSE’s “Application Status Check” under Resources/Tools, select your IPO, and enter your PAN/application details.
This will show whether your bid was allotted and how many shares you got. You can also check the registrar’s site (e.g. Bigshare, KFintech) by entering PAN or application number as guided.