Brigade Hotel Ventures IPO Oversubscribed 1.42 Times on Final Day
Brigade Hotel Ventures' Rs 759.60 crore IPO was oversubscribed 1.42 times on the final day. The price band was Rs 85-90 per share. Retail investors showed strong interest with 5.49 times subscription, while QIBs subscribed only 8% of their portion. Funds will be used for loan repayment, land purchase, and corporate purposes. The grey market premium suggests a potential listing price of Rs 90.50 per share.
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Brigade Hotel Ventures, a wholly owned subsidiary of Brigade Enterprises, has concluded its Initial Public Offering (IPO) with a strong response from investors. The Rs 759.60 crore IPO was oversubscribed 1.42 times on the final day of bidding, showing an increase from 1.19 times subscription on the second day.
IPO Details
The company offered shares in the price band of Rs 85-90 per share through a fresh issue of shares. Notably, there was no offer for sale component in this IPO.
Subscription Breakdown
The IPO received varied responses from different categories of investors:
- Retail Investors: Showed robust interest with 5.49 times subscription
- Qualified Institutional Buyers (QIBs): Subscribed only 8% of their allocated portion
Utilization of Funds
Brigade Hotel Ventures plans to use the proceeds from the IPO for several purposes:
- Repayment of loans
- Purchase of land from promoter BEL (Brigade Enterprises Limited)
- General corporate purposes
Market Sentiment
The grey market premium for Brigade Hotel Ventures stands at Rs 0.50, suggesting a potential listing price of around Rs 90.50 per share.
Lead Managers
JM Financial and ICICI Securities are serving as the book-running lead managers for this IPO.
The successful completion of the IPO marks an important milestone for Brigade Hotel Ventures as it seeks to strengthen its position in the hospitality sector. The strong response from retail investors, in particular, indicates a positive sentiment towards the company's future prospects.
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