Brigade Hotel Ventures shares make weak stock market debut, list at 10% discount to IPO price

Brigade Hotel Ventures shares listed on the stocks exchanges on July 31.

Brigade Hotel Ventures shares made a weak market debut on July 31, listing at Rs 81.10 apiece on NSE. This marks a discount of nearly 10 percent over the IPO price of Rs 90 per share.

The market debut missed grey market estimates. Ahead of listing, the unlisted shares of the company were trading flat at the IPO price at Rs 90 per share with zero grey market premium (GMP), according to data on Investorgain.

The Rs 760-crore IPO of Brigade Hotel Ventures was subscribed nearly 4.5 times its offer size on its third and final day of public bidding (July 28). Retail investors led the subscription race, booking their reserved portion over 6 times.

The maiden public issue of the subsidiary of Bengaluru-based real estate company Brigade Enterprises, received bids for nearly 22.95 crore shares, as against the offer size of 5.12 crore shares, according to data on NSE. Qualified Institutional Buyers (QIB) booked their reserved portion over 5 times, while Non Institutional Investors (NII) subscribed their quota nearly 2 times.

The company had launched its IPO to raise funds from the capital markets through a fresh issue of equity shares worth Rs 759.6 crore with no offer-for sale (OFS) component, at a price band of Rs 85-90 per share. Investors could bid for a minimum of 166 shares, requiring an investment of Rs 14,940 at the upper price band, and in multiples thereafter.

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.

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