Brigade Hotel IPO fully subscribed on Day 2, retail investors lead demand

Brigade Hotel Ventures IPO has received bids for 52.25 million shares, against 51.19 million equity shares on offer,

Brigade Hotel Ventures IPO Day 2 subscription status: The initial public offering (IPO) of hotel developer Brigade Hotel Ventures has entered the second day of bidding and has received a lacklustre response from the investors so far. 

 

The mainline offering has received bids for 52.25 million shares, against 51.19 million equity shares on offer, leading to a subscription of only 1.02 times at 2 PM on Friday, showed NSE data.

 

The retail investors subscribed about 4.06 times the quota reserved for them, and the non-institutional investors (NIIs) portion was booked only 77 per cent. However, the qualified institutional buyers (QIBs) subscribed only 8 per cent.

 

 

Ahead of the issue, the company raised ₹324.7 crore from anchor investors. The company allocated 36 million equity shares to 17 anchor investors at the upper price end of the price band of ₹85 to ₹90 per share, according to the exchange filing.

Brigade Hotel IPO GMP

On the second day of subscription, the unlisted shares of Brigade Hotel Ventures were trading at ₹96 per share, commanding a grey market premium (GMP) of only ₹6 or 6.7 per cent compared to the upper end price of ₹90, according to the sources tracking unofficial markets. 

Brigade Hotel IPO Review

According to analysts at Anand Rathi Research, with a strong emphasis on asset ownership and operational oversight, Brigade Hotel Ventures has consistently demonstrated high levels of operating efficiency. Its affiliation with the reputed Brigade Group provides it with the advantage of strong parentage, deep real estate expertise, and brand credibility.

 

"At the upper price band, the company is valued at P/E of 160x to its FY25 earnings, EV/Ebitda of 25.3x and market cap of ₹3,418.4 crore post issue of equity shares. We believe that the IPO is fully priced and recommend a Subscribe- Long-term rating to the IPO," the brokerage said. READ MORE

Brigade Hotel IPO details

Brigade Hotel IPO comprises a fresh issue of 84.4 million equity shares and no offer for sale (OFS) component. The mainline issue will close for public subscription on Monday, July 28. The basis of allotment of shares is likely to be finalised on Tuesday, July 29. Brigade Hotel Ventures IPO will be listed on the bourses, BSE and NSE, tentatively on Thursday, July 31. 

 

A retail investor would need a minimum investment amount of ₹14,940 to bid for at least one lot at the upper price band.  Retail investors can bid for a maximum of 13 lots or 2,158 shares, amounting to ₹1,94,220.

 

Kfin Technologies is the registrar of the issue. JM Financial and ICICI Securities are the book-running lead managers.