Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with market regulator Sebi to raise Rs 900 crore through an initial public offering (IPO). The draft red herring prospectus (DRHP) states that the proposed IPO is a fresh issue of purely equity shares with no offer-for-sale (OFS) component. Rs 481 crore raised from this issue will be used to repay debt, Rs 412 crore to the company and Rs 69 crore to its SRP Prosperita Hotel Ventures Ltd.

Apart from this, Rs 107.52 crore will be used to buy an un-divided portion of land from the promoter, Brigade Enterprises Limited (BEL). The remaining funds will be used for acquisitions, other strategic initiatives and general corporate purposes. The company can raise up to Rs 180 crore through pre-IPO placement. If the placement is done, the size of the issue will be reduced. Full details about the company Brigade Hotel Ventures Limited is a wholly-owned subsidiary of Brigade Enterprises Limited (BEL), one of the leading real estate developers in India. BEL entered the hospitality business in 2004 with the development of its first hotel - Grand Mercure Bangalore, which started operations in 2009. The company has nine operating hotels with 1,604 hotels in Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysore (Karnataka) and Gift City (Gujarat). These hotels are operated by global leading hospitality companies such as Marriott, Accor and InterContinental Hotels Group. JM Financial and ICICI Securities are the book-running lead managers to the issue.