Brigade Hotel Ventures Limited (BHVL), the hospitality subsidiary of real estate developer Brigade Group, is entering the public markets with its maiden IPO. The IPO opens on 24th July 2025 and closes on 28th July 2025. The ₹759.60 crore issue is entirely a fresh offer of 8.44 crore equity shares, priced in the band of ₹85 to ₹90 per share.
Set to list on BSE and NSE on 31st July 2025, the IPO has already generated moderate interest in the grey market, with a GMP of ₹8, indicating a potential listing price of ₹98 and gains of 8.88%. While the company demonstrates strong EBITDA margins and brand recall, its high valuation and declining PAT pose risks that need to be weighed carefully.
IPO Overview
| Particulars | Details |
|---|---|
| IPO Open Date | 24th July 2025 |
| IPO Close Date | 28th July 2025 |
| Allotment Date | 29th July 2025 |
| Refund Initiation Date | 29th July 2025 |
| Listing Date (Tentative) | 31st July 2025 |
| Issue Type | Bookbuilding IPO |
| Issue Size | 8,44,00,000 shares |
| Total Issue Amount | ₹759.60 crore |
| Face Value | ₹10 per share |
| Price Band | ₹85 to ₹90 per share |
| Market Lot | 166 shares |
| Minimum Investment | ₹14,940 (Retail, 1 lot) |
| Registrar | Kfin Technologies Limited |
| Listing At | BSE, NSE |
The IPO proceeds will be used by the company for capital deployment and expansion, and no Offer for Sale (OFS) is included.
Grey Market Premium (GMP) Trends
As of 24th July 2025, the grey market premium for the Brigade Hotel Ventures IPO stands at ₹8, implying a potential listing price of ₹98 per share at the upper end of the band.
| GMP Date | GMP (₹) | Est. Listing Price (₹) | Listing Gain (%) |
|---|---|---|---|
| 24-Jul-2025 | ₹8 | ₹98 | 8.88% |
| 23-Jul-2025 | ₹14 | ₹104 | 15.55% |
| 22-Jul-2025 | ₹6 | ₹96 | 6.66% |
| 21-Jul-2025 | ₹6 | ₹96 | 6.66% |
| 20-18 Jul | ₹0 | ₹90 | 0.00% |
The GMP trends suggest cautious optimism, with demand showing some pick-up in the secondary market. However, given the IPO’s high valuation, GMP volatility may persist until listing day.
Business Overview
Brigade Hotel Ventures Limited operates in the Indian hospitality industry under the Brigade Group umbrella. The company develops, owns, and operates mid-scale to premium hotels across metropolitan and Tier-1 cities, primarily focused on southern India.
Its hotel portfolio includes properties operated under well-known global brands such as:
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Grand Mercure
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Holiday Inn
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Sheraton
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Four Points by Sheraton
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Signature by Brigade
The company benefits from both domestic tourism recovery and increased business travel post-pandemic, as well as alliances with international hotel chains.
Financial Performance
Year-over-Year Financials (Standalone)
| Financial Metric | FY24 (₹ Cr) | FY25 (₹ Cr) | Change (%) |
|---|---|---|---|
| Revenue | 404.85 | 470.68 | +16.26% |
| Profit After Tax (PAT) | 31.14 | 23.66 | –24.02% |
| EBITDA | 143.51 | 166.90 | +16.30% |
| Net Worth | 786.57 | 880.10 | +11.87% |
| Assets | 1,489.20 | 1,672.55 | +12.31% |
While revenue and EBITDA improved YoY, the PAT decline by over 24% is a concern. This could be due to higher interest costs or depreciation expenses, reflecting capital-intensive operations.
Key Financial Ratios
| Ratio | Value |
|---|---|
| PE Ratio | 125.00 |
| EPS (₹) | 0.72 |
| ROE (Return on Equity) | 30.11% |
| ROCE | 1.62% |
| EBITDA Margin | 35.45% |
| PAT Margin | 5.03% |
| Price to Book (P/B) | 32.26 |
| Market Cap (Est.) | ₹3,418.47 Cr |
The IPO appears to be aggressively priced with a PE of 125, significantly higher than most listed hospitality peers. However, EBITDA margins at over 35% suggest operational strength.
Peer Comparison
| Company Name | Revenue (₹ Cr) | PE Ratio | EPS (₹) | RoNW (%) |
|---|---|---|---|---|
| Brigade Hotel Ventures | 470.68 | 125.00 | 0.72 | 30.11 |
| Indian Hotels Co. Ltd. | 8,565.00 | 56.06 | 13.40 | 16.42 |
| Chalet Hotels Ltd. | 1,754.00 | 136.63 | 6.52 | 4.68 |
| Lemon Tree Hotels Ltd. | 1,084.00 | 62.04 | 2.48 | 13.59 |
| Juniper Hotels Ltd. | 826.00 | 99.48 | 3.20 | 2.61 |
| Samhi Hotels Ltd. | 1,150.00 | 62.75 | 3.84 | 7.49 |
| Apeejay Surrendra Park Hotels | 592.00 | 42.05 | 3.92 | 6.51 |
| Ventive Hospitality Ltd. | 495.00 | 115.58 | 6.83 | 0.82 |
| EIH Ltd. | 2,880.00 | 32.20 | 11.82 | 16.23 |
While Brigade Hotel Ventures shows superior return on net worth, its earnings remain modest, making its valuation appear steep in contrast with sector norms.
IPO Objective and Fund Use
The IPO is an entirely fresh issue, meaning no promoter dilution through OFS. Proceeds are expected to be used for:
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Repayment or prepayment of certain borrowings
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General corporate purposes
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Expansion of hotel inventory
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Investment in property technology and automation
These capital deployments are aligned with industry growth prospects, but post-listing disclosure will provide clarity on fund allocation.
Strengths
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Backed by Brigade Group: A reputed real estate developer with diversified operations in South India.
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Brand Association: Collaborations with global hospitality brands bring trust and consistent occupancy.
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Strong Operating Margins: EBITDA margin above 35%, superior to many peers.
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Asset Ownership Model: Enables higher control and long-term capital appreciation.
Risks
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High Valuation: PE of 125 is substantially higher than sector average.
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Profit Decline: PAT fell 24% YoY, questioning earnings stability.
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High Fixed Costs: Hotel businesses are capex-heavy and sensitive to economic cycles.
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Limited Geographic Spread: Heavy dependence on the southern market, making it vulnerable to regional disruptions.
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Competitive Pressure: From established chains like IHCL, Lemon Tree, and mid-market entrants.
Retail Investor Guidance
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Minimum Investment: ₹14,940 for 1 lot (166 shares)
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Allotment Date: 29th July 2025
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Listing Date: 31st July 2025
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Expected Listing Price: ₹98 (based on GMP of ₹8)
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Estimated Gains: 8.88% at current GMP
Given the GMP trends and demand in the hospitality sector post-COVID, short-term listing gains are possible. However, long-term holding depends on earnings visibility and valuation correction.
Analyst Recommendations
Most brokers have offered neutral to cautious ratings, citing:
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Aggressive pricing
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Weak earnings visibility
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High debt on books
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Declining PAT
Yet, the high RoNW and promoter pedigree offer long-term potential if the company delivers on profitability improvement.
Should You Apply?
Apply If:
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You seek exposure to the hotel and tourism sector.
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You expect short-term listing gains.
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You trust Brigade’s long-term vision and execution.
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You’re comfortable with high valuations and possible near-term volatility.
Avoid If:
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You prefer stocks with strong EPS growth visibility.
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You are risk-averse or valuation-sensitive.
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You seek dividend-paying or stable-return businesses.
Conclusion
Brigade Hotel Ventures IPO is a strategically timed issue aiming to capture investor interest amid a tourism and business travel revival. While the brand strength, operating margins, and parent company support are evident, valuation remains a sticking point.
Retail and HNI investors should monitor subscription levels, GMP movements, and institutional interest during the offer window. Those applying should do so with a clear understanding of the risks and potential in India’s evolving hospitality sector.
