Brigade Hotel Ventures, the hospitality arm of Bengaluru-based real estate conglomerate Brigade Enterprises (BEL), has raised INR 325 crore from a select cohort of 17 institutional investors through its anchor book allocation, marking a robust start to its INR 760-crore IPO that opened today.
Brigade Hotel Anchor Round Oversubscribed, Led by Top Mutual Funds
In Brigade Hotel anchor round, the company allotted 3.6 crore equity shares at INR 90 apiece—the upper limit of its IPO price band of INR 85–90 per share. The anchor tranche, launched on 23 July, garnered strong demand, particularly from domestic mutual funds, which cornered INR 229.4 crore—constituting 70.6% of the anchor investment—through 12 schemes managed by six fund houses.
Key participants in the anchor round include marquee investors such as:
- SBI Mutual Fund
- Franklin India Mutual Fund
- 360 ONE Special Opportunities Fund
- Axis Mutual Fund
- Motilal Oswal Asset Management
- Bandhan Mutual Fund
- Edelweiss Mutual Fund and Trusteeship
- Nuvama Mutual Fund
- Edelweiss Life Insurance
The enthusiastic anchor response reflects institutional confidence in Brigade Hotel Ventures’ growth potential, especially in the context of a buoyant domestic hospitality market.
IPO Details: Pure Fresh Issue, No OFS
The INR 759.6-crore IPO comprises entirely a fresh issue of shares, with no offer-for-sale (OFS) component, ensuring that the proceeds directly bolster the company’s balance sheet.
The issue is open for subscription from 24 to 28 July, with listing slated for 31 July on both the BSE and NSE. The IPO also includes reservations of INR 30.38 crore for Brigade Enterprises shareholders and INR 7.6 crore for eligible employees. The minimum bid lot is 166 shares.
Use of Proceeds
According to the red herring prospectus, Brigade Hotel Ventures will deploy the IPO proceeds as follows:
- INR 468.14 crore for debt repayment
- INR 107.52 crore for acquiring undivided land share from its promoter, BEL
- The remainder will fund strategic acquisitions, new hotel developments, and general corporate purposes
Brigade Hotel anchor funding comes as the company seeks to reinforce its financials and expand its presence in India’s fast-growing hotel market.
Expansion Plans: From 1,604 to 2,600 Keys
Currently operating nine hotels with 1,604 keys across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, Brigade Hotel Ventures plans to expand its portfolio to 2,600 keys by FY29.
Managing Director Nirupa Shankar confirmed the pipeline includes:
- Five new hotels with land and brand partnerships secured
- Three properties under brand agreements with Marriott
- A luxury beach resort in Chennai
- Two upper midscale properties in Bengaluru
This aligns with Brigade’s broader vision to emerge as a formidable hotel owner-developer in South India, leveraging partnerships with global hospitality brands like Marriott, Accor, and IHG.
IPO Backdrop: Trimmed Issue Size Post Pre-IPO Round
Prior to the anchor placement, Brigade Hotel Ventures raised INR 126 crore in a pre-IPO round from 360 ONE Alternates Asset Management. Consequently, the IPO size was revised down from the initially proposed INR 900 crore to INR 760 crore.
The company had filed its draft red herring prospectus (DRHP) with SEBI in October 2024 and received approval in February 2025.
Market Confidence and Outlook
The IPO arrives at a time when India’s hospitality sector is witnessing a post-pandemic surge, driven by robust domestic travel and increasing urbanisation. Brigade Hotel Ventures’ strategic land bank, brand partnerships, and asset-heavy ownership model present a compelling value proposition for long-term investors.
Brigade Hotel anchor round secured institutional backing, all eyes now turn to retail and high-net-worth individual (HNI) investors as the IPO progresses through its subscription window.