Brigade Hotel Ventures Plans IPO: Fresh Momentum through Equity Issuance

Brigade Hotel Ventures, a significant player in South India's hotel industry, has taken the next step towards going public. The company has filed a draft red herring prospectus with the Indian securities regulator SEBI to conduct an IPO worth approximately 9 billion rupees (about 107.06 million USD). Unlike some other IPOs, Brigade Hotel Ventures is exclusively focusing on issuing new shares, with no plans to sell existing shares. As reported by the Press Trust of India, a significant portion of the capital, about 4.81 billion rupees, will be used to repay existing debt. This amount is divided into 4.12 billion rupees for Brigade Hotel Ventures itself and 690 million rupees for its subsidiary SRP Prosperita Hotel Ventures. Additionally, the company plans to invest around 1.075 billion rupees in acquiring an undivided land share from Brigade Enterprises. The remaining funds are earmarked for strategic growth, including acquisitions, as well as general corporate purposes. Expansion is clearly in sight: Brigade Hotel Ventures is exploring properties in Goa and other regions of South India to expand its hotel real estate portfolio. Currently, the company operates nine hotels with a total of 1,604 rooms and is planning five additional facilities, which will be operated by international hotel chains. These new hotels are being developed in Hyderabad, Chennai, Vaikom, and two in Bengaluru. To further reduce its capital needs before the IPO, a pre-IPO transaction of up to 1.8 billion rupees is being considered. If this step is successful, the corresponding amount will be deducted from the final IPO. The parent company BEL completed its first hotel project in 2004 with the Grand Mercure Bangalore, laying the foundation for today's success.