Brigade Hotel Ventures IPO Sees 1.19 Times Subscription on Day 2: Key Insights and Analysis
The initial share sale of Brigade Hotel Ventures Ltd. received strong investor interest on the second day of bidding, with 1.19 times subscription. The company’s initial public offering (IPO) got bids for 6,09,28,972 shares against 5,11,93,987 shares on offer, according to data available with the National Stock Exchange (NSE).
Here’s a detailed analysis of the IPO’s performance and its implications for investors:
IPO Details:
The Brigade Hotel Ventures IPO is a fresh issue of equity shares worth Rs 759.6 crore with no offer-for-sale component. The price band has been fixed at Rs 85 to Rs 90 per share, valuing the company at over Rs 3,400 crore at the upper end of the price band.
The company plans to use the proceeds from the issue to the tune of Rs 468.14 crore to pay off debt, Rs 107.52 crore to purchase an undivided share of land from the promoter, and the remaining funds to support acquisitions, other strategic initiatives, and general corporate purposes.
IPO Subscription:
The IPO received strong subscription from various categories of investors. The retail individual investor category got subscribed 4.65 times, while the non-institutional investor category received 98 per cent subscription. The qualified institutional buyers (QIBs) category fetched 8 per cent subscription.
Brigade Hotel Ventures Ltd. is a subsidiary of Bengaluru-based real estate company Brigade Enterprises Ltd. BEL entered into the hospitality business in 2004 with the development of its first hotel, Grand Mercure Bangalore, which commenced operations in 2009.
The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka), and the GIFT City (Gujarat) with 1,604 keys. The hotels are operated by global marquee hospitality companies such as Marriott, Accor, and InterContinental Hotels Group.
Book Running Lead Managers:
JM Financial and ICICI Securities are the book-running lead managers to the issue.
Conclusion:
The Brigade Hotel Ventures IPO’s strong subscription on the second day of bidding is a positive sign for the company and its investors. The IPO’s performance will be closely watched by investors and analysts in the coming days. With its strong portfolio of hotels and a solid track record, Brigade Hotel Ventures Ltd. has the potential to grow its business in the future.
However, investors should exercise caution and conduct thorough research before making any investment decisions.
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