Brigade Hotel Ventures has filed a Draft Red Herring Prospectus (DRHP) with SEBI for an IPO worth ₹900 crore. The issue will consist of a fresh issue of shares, with each share having a face value of ₹10. The offer will not include any Offer for Sale (OFS). The company aims to raise ₹900 crore through its public issue, but the number of equity shares to be issued by the company has not yet been disclosed.
This IPO will use a book-building process, reserving 75% for Qualified Institutional Buyers, up to 15% for Non-Institutional Investors, and up to 15% for retail investors. Although the IPO opening date, price band, and lot size have not been declared yet, they will be released by the company soon.
This company has already a proper plan for fund deployment as to where proceeds should be expensed. According to DRHP, The company plans to allocate ₹481 crore towards the repayment or prepayment, either in full or in part, of borrowings incurred by the company and its subsidiary. Moreover, ₹10.75 crore will be used to pay the promoter for purchasing an undivided share of land, while the rest of the funds will be used for general purposes.
ICICI Securities Limited and JM Financial Limited are the lead managers to handle the entire IPO process.
Brigade Hotel Ventures operates nine hotels in important cities, including Bengaluru, Chennai, Kochi, and GIFT City. These hotels are run by leading international brands like Marriott, Accor, and InterContinental Hotels Group. As of June 2024, Brigade Hotel Ventures ranks as the second-largest owner of chain-affiliated hotels and rooms in South India.
The company established its presence in the hospitality sector in 2004 with the launch of “Grand Mercure Bangalore.” Moreover, the company has seen an increase in revenue from operations over the years. In 2022, it was INR 1.5 billion, which grew to INR 3.5 billion in 2023, and is projected to reach INR 4 billion in 2024. Assets grew by 5.48%, from ₹840.67 crores in March 2023 to ₹886.78 crore in March 2024, while Total Borrowing has decreased from Rs 632.50 crores to Rs 601.19 crores.
Brigade Hotel IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Brigade Hotel Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹151.95 | ₹255.52 | ₹103.57 |
| 2023 | ₹356.41 | ₹371.95 | ₹15.54 |
| 2024 | ₹404.85 | ₹372.77 | ₹32.08 |
| June 2024 | ₹102.20 | ₹97.34 | ₹4.86 |
Brigade Hotel IPO Valuation – FY2024
Brigade Hotel IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹0.88 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 53.01% |
| Net Asset Value (NAV): | ₹2.09 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| The Indian Hotels Company Limited | 8.86 | 77.51 | 13.13 | 71.16 | 67,68.75 Cr. |
| EIH Limited | 10.22 | 39.04 | 16.58 | 65.34 | 25,11.27 Cr. |
| Chalet Hotels Limited | 13.54 | 64.56 | 15.03 | 84.86 | 14,17.25 Cr. |
| Juniper Hotels Limited | 1.46 | 259.73 | 0.90 | 119.34 | 8,17.66 Cr. |
| Lemon Tree Hotels Limited | 1.88 | 65.56 | 11.75 | 19.52 | 10,77.12 Cr. |
| Samhi Hotels Limited | (14.67) | NA | NA | 47.20 | 9,57.39 Cr. |
| Apeejay Surendra Park Hotels Limited | 3.82 | 41.69 | 5.74 | 56.13 | 5,78.97 Cr. |
Objects of the Issue
- Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by our: (i) Company; and (ii) Material Subsidiary, namely, SRP Prosperita Hotel Ventures Limited;
- Payment of consideration for buying of undivided share of land from our Promoter, BEL
- Pursuing inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
IPO Lead Managers aka Merchant Bankers
- JM Financial Limited
- ICICI Securities Limited
