Brigade Hotel Ventures IPO to open on July 24: Anchor investors buy Rs 325 crore worth shares

Brigade Hotel Ventures IPO to open on July 24

South-based hotel chain Brigade Hotel Ventures has raised Rs 324.7 crore from several institutional investors via anchor book launched on July 23, a day before the issue opening.

The Rs 759.6-crore initial share sale will open for public subscription on July 24, and close on July 28, with price band of Rs 85-90 per share.

The IPO comprises of entirely fresh issue component. Hence, the entire issue proceeds will go to the company.

The subsidiary of Bengaluru-based real estate developer Brigade Enterprises on Wednesday said it has finalised allocation 3.6 crore equity shares to anchor investors at Rs 90 per share.

Marquee institutional investors like SBI Mutual Fund, Franklin India, 360 ONE Special Opportunities Fund, Axis Mutual Fund, Motilal Oswal AMC, Bandhan Mutual Fund, Edelweiss Trusteeship, Nuvama, and Edelweiss Life Insurance Company participated in the anchor book.

"Six domestic mutual funds have invested Rs 229.4 crore (which is 70.6 percent of total investment by anchor investors) in the company through their 12 schemes," the company said.

Brigade Hotel Ventures that operates the chain of affiliated hotels and hotel rooms in South India with 1,604 keys intends to utilise Rs 468.1 crore of the IPO proceeds for repaying debt, and Rs 107.5 crore for buying undivided share of land from the promoter Brigade Enterprises.

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Further, the remainder IPO funds will be used for unidentified acquisitions and other strategic initiatives and general corporate purposes.

JM Financial, and ICICI Securities are acting as the book running lead managers for the Brigade Hotel Ventures IPO.