Leela Hotels Operator To Raise ₹3,500 Cr via Public Issue, IPO Opens May 26; Price Band ₹413–₹435

Mumbai: Schloss Bangalore, the operator of India’s premium Leela Hotels brand, is all set to open its initial public offering (IPO) on May 26, 2025. The IPO comprises a fresh issue of 57.5 million shares aggregating Rs 2,500 crore and an offer for sale (OFS) of 23 million shares worth Rs 1,000 crore. The total issue size of Rs 3,500 crore marks a 30% reduction from its originally proposed Rs 5,000 crore.

Price Band, Lot Size & Investment

The IPO price band has been fixed between Rs 413 and Rs 435 per share. Retail investors can bid in lots of 34 shares, requiring a minimum investment of Rs 14,042. The subscription window will remain open for three days and close on May 28, 2025.

Share Allocation Structure

As per the red herring prospectus, 75% of the IPO is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail individual investors.

Listing & Important Dates

The basis of allotment will be finalized by May 29, 2025. Shares are expected to be listed on the BSE and NSE on June 2, 2025. Anchor investor bidding will be held on May 25, one day before the issue opens.

IPO Objectives

The net proceeds from the fresh issue will primarily be used to repay or prepay certain outstanding borrowings along with interest and penalties. A portion will also go toward general corporate purposes.

Grey Market Premium (GMP)

As of May 21, 2025, Schloss Bangalore’s unlisted shares were trading at Rs 453, reflecting a grey market premium of Rs 18 or about 4% over the IPO’s upper price band.

Company Background

Incorporated in 2019, Schloss Bangalore manages, owns, and operates luxury hotels under “The Leela” brand. With 13 operational hotels comprising 3,553 keys across India, the company is among the country's largest luxury hospitality firms by room count. Its portfolio includes five wholly owned properties, seven managed properties, and one under a franchise agreement.

Financial Snapshot

For FY25, Schloss Bangalore reported a consolidated revenue of Rs 1,300.5 crore, marking an 11% rise from Rs 1,171.4 crore in FY24. The company turned profitable with a PAT of Rs 49.2 crore, compared to a net loss of Rs 2.12 crore the previous year.

Lead Managers & Registrar

The IPO is managed by top investment banks, including JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Kotak Mahindra Capital, and others. Kfin Technologies is the registrar for the issue.