Brigade Hotel Ventures has successfully secured ₹126 crore through a pre-IPO placement round. The company issued 14,000,000 equity shares to 360 ONE Alternates Asset Management (360 ONE) across various series, priced at ₹90 per share, which includes a premium of ₹80. This transaction, totaling ₹126 crore, accounts for 4.74% of the company’s pre-offer share capital.
As stated in the DRHP, the company’s initial public offering consisted of a fresh issue of equity shares with a face value of ₹10 each, aggregating up to ₹900 crore. This amount has now been revised to ₹774 crore. The company intends to utilize the net proceeds from its fundraising primarily for debt reduction and strategic initiatives.
Approximately ₹481 crore is designated for the repayment or prepayment, either fully or partially, of certain outstanding borrowings. This includes ₹412 crore allocated for the company itself and ₹69 crore for its material subsidiary, SRP Prosperita Hotel Ventures. Furthermore, ₹107.519 crore is set aside for the payment of consideration to acquire an undivided share of land from the promoter, BEL.
The remaining proceeds will be allocated towards pursuing inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes. Brigade Hotel Ventures operates as a wholly-owned subsidiary of Brigade Enterprises. The company boasts a portfolio of nine operational hotels located in Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka), and the GIFT City (Gujarat), totaling 1,604 keys.
These properties are managed by renowned global hospitality brands, including Marriott, AAPC India Hotel Management, and InterContinental Hotels Group (India). JM Financial and ICICI Securities serve as the book running lead managers for the issue.
