The application window for the Brigade Hotel Ventures IPO is set to close today. This article delves into the latest subscription status, Grey Market Premium (GMP) trends, and potential application strategies based on the current market dynamics. Investors are advised to review the details before making their final decision.
Brigade Hotel Ventures IPO: Key Dates and Details
The Brigade Hotel Ventures IPO commenced its application period on July 24th, followed by July 25th as the second day. Today marks the third and final day for applications, as is typical for most mainboard IPOs. The face value of each equity share is ₹10. Shares will be allocated at the cut-off price of ₹90 per share, with a minimum application requiring 16 equity shares.
Understanding the IPO Structure and Allocation
The total issue size of the Brigade Hotel Ventures IPO is ₹760 crore. A significant point for retail investors is that only approximately 9% of the shares are allocated to the retail category. This limited allocation contributes to a lower chance of receiving an allotment for individual retail applicants. Anchor investors have already been allocated shares worth ₹324 crore.
Brigade Hotel Ventures IPO Live Subscription Status (Day 3)
As of approximately 1:05 PM on the third day of the IPO, the subscription figures across different categories are as follows:
- Qualified Institutional Buyers (QIB): The QIB category has not yet seen strong responses, despite expectations for it to be subscribed 5 to 10 times by this time.
- Non-Institutional Investors (HNI): The HNI category is subscribed 1.51 times. Within this, the Big HNI category has seen subscription of 1.19 times, suggesting a high chance of allotment for applicants in this segment. The Small HNI category currently shows about a 50% chance of allotment.
- Retail Individual Investors (RII): The retail category has been subscribed 6.08 times, indicating the lowest chance of allotment among all categories due to the high demand against limited allocation.
- Employee Category: This category has been subscribed 0.83 times.
- Shareholders Category: This category has witnessed a subscription of approximately 2.50 times.
Overall, as of the current time on the third day, the IPO is subscribed 1.90 times.
Grey Market Premium (GMP) Insights
The Grey Market Premium (GMP) for Brigade Hotel Ventures IPO has shown fluctuation. In the morning, the GMP was trading around ₹2, but it has since dropped to ₹0. This suggests that there is currently no premium in the grey market for this IPO. A positive momentum in GMP might only be seen if QIBs heavily subscribe to the IPO by 3 PM, 4 PM, or around 5 PM today. As per current trends, while there’s a higher chance of allotment for some categories, the probability of securing listing gains appears low.
Is Applying to Brigade Hotel Ventures IPO a Good Idea? (Risk/Reward)
Based on the current subscription status and GMP, the IPO presents a high-risk, low-reward scenario. The speaker in the video personally plans to apply for one to two lots in the retail category, acknowledging the risk involved. The strategy is to aim for any potential listing gains or to exit the position in the short term if the IPO lists at a discount.
Further updates regarding the 5 PM subscription status will be shared in a subsequent video.
