Brigade Hotel Ventures Ltd (BHVL), the hospitality arm of Brigade Enterprises, launched its IPO on July 24, 2025, aiming to raise ₹759.6 crore via a fresh issue priced at ₹85–₹90 per share
The IPO is entirely a fresh issue, and there’s no offer-for-sale component BHVL plans to use funds for debt repayment, land acquisition from parent BEL, and expansion of hotel assets
– Day 1 saw roughly 63% subscription, largely driven by retail and non-institutional investors NDTV . – Initial Grey Market Premium (GMP) hinted at a 9% listing gain
As of July 22, GMP peaked around ₹14–₹16, indicating a possible 16–18% premium listing On July 23, GMP was down to ₹8, translating to an expected listing around ₹98, or ~8.9% gain
The IPO subscription climbed to 1.18x by Day 2, mostly from retail and NII segments By final Day 3, subscription reached 1.34x, but GMP softened—suggesting a flat debut near issue price
BHVL owns properties mainly in Bengaluru, Chennai, Kochi, Mysuru, and GIFT City in Gujarat. While it owns the real estate, global brands like Marriott and Accor manage operations
High occupancy rates (~77%) and strong Return on Equity (RoNW ~30%) in FY25 – Heavy dependence on two major cities, exposure to regional economic shifts.
Analysts flag that despite solid fundamentals (profitability turnaround), the IPO is priced aggressively at ~145× FY25 earnings, limiting margin of safety
High GMP (~₹14–₹16) reflected strong bullish sentiment ahead of listing. Moderate GMP (~₹6–₹8) during subscription period signaled tempered enthusiasm.
GMP suggests a flat initial listing. Investors should weigh subscription only after assessing valuation metrics and risk appetite—taking into account modest return expectations. BHVL may be a long-term hospitality play rather than a listing pops opportunity.