Brigade Hotel Ventures, a subsidiary of Brigade Enterprises, has filed a draft prospectus to raise ₹900 crore in an initial public offer through a fresh issue of shares.
The company has a portfolio of 9 operating hotels in Bengaluru, Chennai, Kochi, Mysuru and Gift City in Gujarat. The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group and are in the upper upscale, upscale, upper-midscale, and midscale segments.
Of the funds raised in the IPO, ₹481 crore will be utilised to repay debt of the company and a material subsidiary, ₹107.5 crore will be used to pay for acquiring undivided share of land from its promoter Brigade Enterprises and the remaining for inorganic growth opportunities and other general corporate purposes.
It is also considering making a pre-IPO placement of up to ₹180 crore.
According to the draft red herring prospectus, the hospitality company reported a loss of ₹4.9 crore in the June quarter. It reported a profit of ₹24.9 crore in FY24, after a loss of ₹3.8 crore in FY23 and ₹76.5 crore loss in FY22.
In the June quarter it reported revenue of ₹101.8 crore, in FY24 it reported ₹401.7 crore revenue, ₹350 crore in FY23 and in FY22 it’s revenue was ₹146.5 crore.