Brigade Hotel Ventures Ltd Aims for Rs 900 Crore IPO to Fuel Expansion

Brigade Hotel Ventures Ltd is set to raise Rs 900 crore through an IPO, focusing on debt repayment and expansion. The funds will be allocated towards debt payment, strategic acquisitions, and corporate purposes. The company's portfolio features hotels across various Indian cities, operated by top international hospitality chains.

Brigade Hotel Ventures Ltd, a prominent hospitality developer in South India, has submitted draft papers to Sebi for an initial public offering (IPO) worth Rs 900 crore. This IPO is a fresh equity issue without an Offer-for-Sale component, as outlined in the draft red herring prospectus.

The proceeds will largely be utilized for debt repayment, with Rs 481 crore earmarked for this purpose. Additionally, Rs 412 crore is allocated to Brigade Hotel Ventures Ltd, and Rs 69 crore to its subsidiary SRP Prosperita Hotel Ventures Ltd. The funds will also support land acquisitions, strategic initiatives, and general corporate needs.

In line with expansion goals, the company may secure Rs 180 crore via a Pre-IPO Placement, potentially reducing the IPO size. Brigade Hotel Ventures Ltd is a subsidiary of Brigade Enterprises Ltd, a leading Indian real estate firm active in the hospitality sector since 2004, boasting a portfolio of nine hotels managed by global giants such as Marriott and Accor.

(With inputs from agencies.)