Brigade Hotel Ventures, the second largest private owner of chain-affiliated hotels in South India, has successfully raised Rs 126 crore in a pre-IPO placement. The company issued 14,000,000 equity shares to 360 ONE Alternates Asset Management, priced at Rs 90 per share, in consultation with the lead bankers. This transaction accounts for 4.74% of the pre-offer share capital.
The company’s initial public offering (IPO) has been adjusted from an initial Rs 900 crore to a revised sum of Rs 774 crore, following the pre-IPO placement. Brigade Hotel Ventures plans to use the proceeds from the IPO primarily for debt reduction and strategic initiatives.
The funds raised through the IPO are earmarked for several key objectives. Approximately Rs 481 crore will be allocated to repay or prepay certain outstanding borrowings, including Rs 412 crore for the company and Rs 69 crore for its subsidiary, SRP Prosperita Hotel Ventures Limited. An additional Rs 107.519 crore is designated for purchasing an undivided share of land from the promoter, BEL. The remaining funds will support potential acquisitions and other strategic initiatives.
Brigade Hotel Ventures, wholly owned by Brigade Enterprises, owns and develops hotels across key cities in South India. Since its entry into the hospitality sector in 2004, it has grown to manage nine operating hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, managing a total of 1,604 keys. These properties are operated under renowned global hospitality brands such as Marriott and InterContinental Hotels Group.
As the second-largest private hotel asset owner in South India, Brigade Hotel Ventures continues to expand its portfolio, which spans various segments from upper upscale to midscale categories. This strategic positioning makes it a significant player in the regional hospitality market.
JM Financial and ICICI Securities are appointed as the Book Running Lead Managers for the IPO. Their involvement is expected to facilitate a smooth and successful offering.
The pre-IPO placement with 360 ONE marks a major step in the company’s financial strategy, aligning with its broader objectives of enhancing operational capacity and financial health. This move underscores the company’s commitment to strategic growth and market expansion.
The adjusted IPO reflects Brigade Hotel Ventures’ strategic financial planning, setting the stage for its anticipated public market debut. This capital restructuring is poised to bolster the company’s market position and enhance shareholder value.
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