Curation Team
NEW DELHI: Brigade Hotel Ventures has raised ₹126 crore in a pre-IPO placement round. It issued 14,000,000 equity shares to 360 ONE Alternates Asset Management (360 ONE) across various series, at a price of ₹90 per share (including a premium of ₹80). This transaction, amounting to ₹126 crore, represents 4.74% of the company’s pre-offer share capital.
According to the DRHP, the company’s initial public offering comprised of a fresh issue of equity shares of face value of ₹10 each aggregating up to ₹900 crore. This has now reduced to ₹774 crore.
The company plans to utilise the net proceeds from the fundraising efforts primarily towards debt reduction and strategic initiatives.
An estimated ₹481 crore will be allocated for the repayment or prepayment, either fully or partially, of certain outstanding borrowings. This includes ₹412 crore for the company itself and ₹69 crore for its material subsidiary, SRP Prosperita Hotel Ventures.
Additionally, ₹107.519 crore is earmarked for the payment of consideration to purchase an undivided share of land from the promoter, BEL.
The remaining proceeds will be directed towards pursuing inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes
Brigade Hotel Ventures is a wholly-owned subsidiary of Brigade Enterprises. 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.
These properties are managed by global hospitality brands such as Marriott, AAPC India Hotel Management, and InterContinental Hotels Group (India).
JM Financial and ICICI Securities are the book running lead managers to the issue.
