Brigade Hotel Ventures IPO gets subscribed 63% on day 1 so far

Brigade Hotel Ventures IPO gets subscribed 28% on day 1 so far

The initial public offer of Brigade Hotel Ventures Ltd got subscribed 63 percent on day 1 of bidding on July 24.

The initial share sale received bids for 3,20,21,234 shares against 5,11,93,987 shares on offer, according to NSE data.

Retail Individual Investors (RIIs) part got subscribed 250 percent while non-institutional investors portion received 18 percent subscription. The quota for Qualified Institutional Buyers (QIBs) received 8 percent subscription. The employee portion got booked 29 percent while the shareholder quota saw 90 percent subscription.

The initial public offering (IPO) is scheduled to remain open till July 28. The price band has been set at Rs 85 to Rs 90 per share.

Brigade Hotel Ventures' IPO is entirely a fresh issue of equity shares worth Rs 759.6 crore with no offer-for sale (OFS) component.

Bajaj Broking said investors should subscribe to the issue for the long term.

Proceeds from the issue to the tune of Rs 468.14 crore will be used for the payment of debt; Rs 107.52 crore will be utilised for the purchase of an undivided share of land from the promoter, BEL; and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.

Earlier this month, Brigade Hotel Ventures raised Rs 126 crore by selling equity shares to 360 ONE Alternates Asset Management.

Brigade Hotel Ventures Ltd is a subsidiary of Bengaluru-based real estate company Brigade Enterprises Ltd (BEL).

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.

The company announced that 75 percent of the offer size has been set aside for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 percent for retail investors.

JM Financial and ICICI Securities are the book-running lead managers to the issue. Shares of the company are expected to list on the bourses on July 31.