Brigade Hotel Ventures has received the Securities and Exchange Board of India’s (SEBI's) approval to raise Rs 900 crore through an initial public offering (IPO).
Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures. Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes. JM Financial and ICICI Securities are the book-running lead managers to the issue.
Brigade Hotel Ventures is a wholly-owned subsidiary of Brigade Enterprises (BEL), which is one of the leading Indian real estate developers in India. The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys. The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group.
