Bengaluru: Brigade Hotel Ventures Limited, a 100 per cent subsidiary of Brigade Enterprises Limited, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO) on Thursday.
The company said that Rs 481 crore from the net proceeds from the issue shall be utilised for the repayment or prepayment, in full or in part, of outstanding borrowings availed by their company (Rs 412 crore) and material subsidiary, SRP Prosperita Hotel Ventures Limited (Rs 69 crore).
Also Rs 107.5 crore will be used for the payment of consideration for buying of undivided share of land from Brigade Enterprises. The remaining money will be used to pursue inorganic growth through acquisitions and other initiatives and general corporate purposes.
Brigade Hotel Ventures is considering acquiring new land parcels to expand their portfolio to newer geographies across India such as Goa and South India for developing new hotels.
The company has opened nine hotels so far with a total of 1,604 keys.
The company in the filing said, “Our expansion plans include development of five additional hotels which will be operated by global hospitality companies."
These will be located in Chennai, Hyderabad, Vaikom, along with two in Bengaluru.
The company may also raise up to Rs 180 crore through a pre-IPO placement. If the placement is completed, the amount raised will be reduced from the issue.