Brigade Hotel Ventures shares list at 10% discount to IPO price

Brigade Hotel Ventures made a tepid debut on the stock exchanges, listing at Rs 81.10 on the BSE — a 9.89% discount to its IPO price of Rs 90. On the NSE, the stock opened at Rs 82, down Rs 8 or 8.89% from the issue price.

Investor sentiment in the unofficial market was also subdued, with the stock commanding a grey market premium (GMP) of zero as of Wednesday, signalling expectations of a flat listing.

The company, a subsidiary of real estate major Brigade Enterprises, offered 8.44 crore equity shares in a fully fresh issue at a fixed price of Rs 90 apiece. The Rs 759.60 crore IPO was subscribed 4.48 times overall, with retail investors leading the demand.

While the anchor book raised Rs 324.73 crore ahead of the public issue, the lack of listing buzz in the grey market suggests that investors may be approaching the stock with caution amid muted sectoral sentiment and slowing bottom-line growth.

Brigade Hotel Ventures reported a 24% year-on-year decline in profit after tax for FY25, even as revenues grew 16% to Rs 470.7 crore.

The company owns and operates nine upscale hotels across South India and GIFT City with 1,604 rooms, under renowned global brands such as Marriott, Accor, and IHG. Its properties are focused on both business and leisure travel, offering MICE facilities, fine dining, spas, and other high-end amenities.

Despite the subdued short-term cues, the hospitality industry has seen a steady post-Covid recovery, and the company’s tie-up with international operators and strong parentage through Brigade Enterprises may help drive long-term investor confidence.

Shares are set to list on both the BSE and NSE. Investors and analysts will closely watch the stock’s performance on debut to gauge whether the absence of a GMP translates into a muted open — or whether fundamentals and brand strength can lift it above issue price.