New Delhi, July 31 — Real estate developer Brigade Hotel Ventures, which builds hotels across various Indian cities, made a disappointing debut on the stock market today, leaving its IPO investors in the red. The company had issued its shares at ₹90 under the IPO. However, it listed at ₹82 on the BSE and ₹81.10 on the NSE, resulting in an immediate loss of around 9% for IPO investors.
Partial Recovery After Listing
Following the initial listing, buying interest led to a partial recovery in the stock. By 12 noon, Brigade Hotel Ventures shares were trading at ₹86.03, trimming the loss to around 4.41% in the first session of the day.
IPO Subscription and Fund Utilisation
Brigade Hotel Ventures’ ₹759.60 crore IPO was open for subscription from July 24 to July 28 and received an average response from investors. Overall, the issue was subscribed 4.76 times. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 5.74 times, while the Non-Institutional Investors (NIIs) segment received 2.03 times subscription. The retail investor portion was subscribed 6.83 times, and the employee portion 0.99 times.
Under the IPO, the company issued 8.44 lakh new shares with a face value of ₹10 each. The funds raised will be used for repaying old debt, purchasing land from promoter company BEL, and general corporate purposes.
Financial Performance Shows Turnaround
According to the prospectus, the company’s financial performance has steadily improved. In FY 2022–23, Brigade Hotel Ventures reported a net loss of ₹3.09 crore. However, it turned profitable in FY 2023–24 with a net profit of ₹13.14 crore, which further surged to ₹23.66 crore in FY 2024–25. During this period, the company’s revenue grew at a compound annual growth rate (CAGR) of over 14%, reaching ₹470.68 crore.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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