By 4:30 pm on day 2, the retail tranche had been bid 4.61 instances, whereas the non-institutional investor (NII) class noticed 97% subscription. The quota for certified institutional patrons (QIBs) acquired 8% bids.
GMP of Brigade Lodge IPO
Within the unofficial gray market, Brigade Lodge shares have been buying and selling at a premium of Rs 6 over the difficulty’s higher worth band of Rs 90, indicating a possible itemizing worth of Rs 96 and an implied 6.7% upside. The GMP fell from Rs 8 on Thursday.
IPO particulars
The IPO, comprising a contemporary challenge of 8.44 crore shares, is priced in a variety of Rs 85–90 per share and can stay open till July 28. The inventory is scheduled to debut on each BSE and NSE on July 31.
Portfolio and progress plans
BHVL operates 9 upscale motels with 1,604 rooms throughout key South Indian cities together with Bengaluru, Chennai, Kochi, and Mysuru, in addition to GIFT Metropolis in Gujarat. These properties are managed underneath marquee hospitality manufacturers similar to Marriott, Accor, and IHG.
The corporate posted a median occupancy fee of 76.8% in FY25, properly above the trade common of 64.5%. BHVL goals to increase its portfolio to 14 motels with 2,560 keys by FY29, with upcoming tasks together with a Grand Hyatt in Chennai and a Ritz-Carlton wellness resort in Kerala.
Financials and valuation
Revenues grew from Rs 350 crore in FY23 to Rs 468 crore in FY25, supported by robust working efficiency, with EBITDA margins holding at 35%. Nonetheless, internet revenue slipped to Rs 23.7 crore in FY25 from Rs 31 crore the earlier yr, whereas return ratios stay subdued.
On the high finish of the worth band, the difficulty is valued at a price-to-earnings (P/E) a number of of 125x and a price-to-book (P/B) of 32.3x — ranges that outstrip friends similar to Lemon Tree Lodges and Indian Lodges Co.
Analyst view
Brokerages stay divided. Ventura Securities has issued a ‘Subscribe’ ranking, citing the corporate’s premium asset base and robust model partnerships, whereas Canara Financial institution Securities has cautioned about steep valuations, suggesting solely long-term buyers take into account the supply.
Given its strategic presence in South India, premium affiliations, and enlargement pipeline, BHVL is well-positioned to trip India’s hospitality upcycle. But, the subdued gray market premium of 9% and the lofty valuation metrics recommend restricted near-term itemizing features.
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(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t characterize the views of the Financial Occasions)
