The Brigade Hotel Ventures IPO, priced at ₹85–90, now trades at just ₹1.5 GMP, indicating negligible listing upside (~2%). Subscriptions have crossed 1.3× overall—here’s a deeper analysis before you apply.
📈 GMP & Subscription at a Glance
- Price Band: ₹85 – ₹90 per share
- IPO Size: ₹759.6 crore (fresh issue of 8.44 crore shares) (turn0news15, turn0search4)
- Subscription Day 3: ~1.34× overall; Retail booked ~5.46×, NIIs ~1.22×, QIB just ~0.08× (turn0news13)
- Grey Market Premium (GMP): ₹1.5 as of July 28 (down from ₹2 earlier), implying a potential flat listing at ₹91.5 (turn0search0)
🔍 Why the GMP Trend Is Weak
1. Lukewarm Institutional Interest
While retail showed strong appetite (~5×), QIB participation remains minimal (8%), limiting pricing power and dampening GMP momentum (turn0search1, turn0search2).
2. Valuation Concerns
At ₹90, the issue values Hive at ~₹3,418 cr, translating into stretched multiples—P/E ~125x FY25 earnings, EV/EBITDA ~25x, and P/B ~32x—making investors cautious.(turn0search3, turn0search9)
3. Profitability Still Modest
Though revenue rose (₹468 cr in FY25), net profit slipped to ₹23.7 cr vs ₹31 cr in FY24. EBITDA margins with ₹23.66 cr PAT are thin relative to peer comps.(turn0search7, turn0search5)
✅ Strengths & ⚠️ Caution Notes
Strengths
- Strategic asset base: Nine hotels (1,604 rooms) across Bengaluru, Chennai, Kochi, Mysuru & GIFT City
- Operated by premium global hospitality brands like Marriott, Accor, IHG
- Backed by real estate giant Brigade Enterprises
- IPO proceeds earmarked for debt reduction (~₹468 cr), land acquisition, and expansion (turn0search1, turn0search4)
Risks
- High debt-to-equity (~1.5x post IPO) vs industry average (~0.7x)
- Business reliant on branded operator partnerships, exposing it to execution and service-risk dynamics
- Sector cyclicality and limited profitability raise valuation concern
- GMP sliding from ₹8 to ₹1.5 highlights demand cooling (turn0search0, turn0search3)
🙋 FAQs
Q1: What is GMP today?
As of July 28, GMP is ₹1.5 per share—down from ₹8 earlier—indicating only ~2% estimated listing gain over ₹90 issue price.(turn0search0)
Q2: When is the IPO closing and listing?
Subscription closes on July 28, allotment on July 29, and listing expected on July 31 across NSE/BSE.(turn0search4, turn0news13)
Q3: Does low GMP mean the IPO is not worth it?
Low GMP suggests weak listing momentum. Retail might still see value in long-term investment, but short-term gains appear limited.
Q4: Should I subscribe based on GMP?
If you’re chasing listing pop only, the ₹1.5 GMP (~2%) may not justify the risk. Long-term buyers should rely on the company’s asset quality and future expansion, not GMP sentiment alone.
🔚 Final Thoughts
Brigade Hotel Ventures IPO shows moderate retail enthusiasm, but low QIB demand and high valuation have pulled GMP down to ₹1.5. With an estimated flat listing near ₹91.5, short-term gains appear marginal. Long-term investors may still consider it if they have faith in the hospitality sector’s recovery and Brigade’s asset diversification. However, the visible cooling in sentiment and weak institutional interest suggests caution—do not rely solely on GMP trends when deciding to subscribe.
⚠️ Disclaimer
This blog is for informational purposes only. GMP is unregulated and speculative; IPO pricing may vary. Please consult a SEBI-registered financial advisor before investing.
