Brigade Hotel Ventures’ Rs 760 crore ($88 million) initial public offering was fully subscribed on the second day of bidding on Friday, as investor optimism about India’s burgeoning hospitality sector strengthens.
Total bids matched the shares on offer, a fresh issue, exchange data showed as of 1:28 pm local time.
Shares of the hotel operator, which is aiming for a valuation of around $397 million, are slated to list on July 31, Thursday.
India’s hotel operators are cashing in on the surge in travel, as both business and leisure trips rebound across the country. Fueling the momentum is a wave of wealthy Indians spending big on luxury, not just on stays, but on cars, apartments, designer watches and even upscale bathrooms.
Hospitality firms such as ITC Hotels and Leela-owner Schloss Bangalore have made a beeline for public markets over the past two years, betting on sustained demand for premium experiences.
Brigade Hotel Ventures first filed for an IPO in October with an offer size of Rs 900 crore, with the trimmed IPO size coming after a partial debt repayment and pre-IPO fundraises.
The firm runs nine hotels across five Indian cities, partnering with Marriott, Accor and IHG in the mid-to-upscale segments.
Reuters
