Brigade Hotel Ventures Limited has received approval from the Securities and Exchange Board of India (SEBI) to undertake an initial public offering (IPO). The corporation plans to raise Rs 900 crores to fund debt payments, land purchases, and future growth strategies.
Brigade Hotel Ventures, a subsidiary of Brigade Enterprises Limited, specialises in developing, owning, and operating hotels in South India's key cities. With a rising presence in the hospitality business, the company has significantly increased its hotel portfolio, increasing the number of keys from 1,474 in FY22 to 1,604, reflecting its capacity to accommodate travellers' changing needs in a competitive market.
Brigade Hotel Ventures' IPO aims to raise Rs 900 crores by issuing fresh equity shares with a face value of Rs 10 each. It will be used mainly to repay existing borrowings, notably those of its material subsidiary, SRP Prosperita Hotel Ventures Limited. Furthermore, a portion of the revenues will be used to purchase an undivided share of land from its parent business, Brigade Enterprises.
Additionally, the company intends to pursue inorganic growth opportunities through acquisitions and other strategic activities while advancing overall corporate goals. Brigade Hotel Ventures' IPO commitment is to boost its market position and increase its presence in the burgeoning hospitality industry.
