New Delhi, July 31(HS): Brigade Hotel Ventures, a real estate developer constructing hotels nationwide, had a disappointing stock market debut, resulting in significant losses for IPO investors. The shares, issued at 90 rupees, debuted at 82 rupees on the BSE and 81.10 rupees on the NSE, reflecting an initial loss of around 9 percent for investors. However, following market activity, the shares rose to 87.80 rupees but closed at 85.40 rupees, culminating in a first-day loss of 5.11 percent.

The company's IPO, amounting to 759.60 crores, was open from July 24 to July 28 and garnered a moderate response, achieving an overall subscription of 4.76 times. The Qualified Institutional Buyers (QIB) segment was subscribed 5.74 times, while Non-Institutional Investors (NII) saw a subscription of 2.03 times. Retail investors showed stronger interest with a subscription rate of 6.83 times, whereas the employees' segment was subscribed only 0.99 times. The IPO issued 8.44 lakh new shares with a face value of 10 rupees. Funds raised will be allocated to settle existing debts, acquire land from the promoter company BEL, and meet general corporate expenses.

In terms of financial performance, the company's claims in its prospectus reveal a trend of improvement. For the fiscal year 2022-23, Brigade Hotel Ventures reported a net loss of 3.09 crores, but turned profitable in 2023-24 with a net profit of 13.14 crores. The following fiscal year, 2024-25, projected a net profit of 23.66 crores. Over this timeframe, the company's revenue also increased, reaching 470.68 crores with a compounded annual growth rate exceeding 14 percent.

Overall, despite the initial weak performance in the stock market, Brigade Hotel Ventures reflects an upward trajectory in its financial health, with strategic plans to utilize IPO proceeds for debt management and expansion efforts.

Hindusthan Samachar / Jun Sarkar