Leela Palaces parent firm to float Rs 3,500-cr IPO on May 26

Leela Palaces Hotels & Resorts fixes price band at Rs 413-435/share

Agencies Updated: Wednesday, May 21, 2025, 10:41 PM IST
(L-R): Ms. Neha Agarwal (Managing Director & Head - Equity Capital Markets, JM Financial Limited); Mr. Anuraag Bhatnagar (Chief Executive Officer, Schloss Bangalore Limited (The Leela Palaces, Hotels and Resorts)); Mr. Ankur Gupta (Managing Partner, Head of Real Estate for Asia Pacific & Middle East, Brookfield); Mr. Ravi Shankar (Head - Asset Management and Chief Financial Officer, Schloss Bangalore Limited (The Leela Palaces, Hotels and Resorts)); and Mr. V Jayasankar (Managing Director and Member of the Board, Kotak Mahindra Capital Company Limited) at the press conference of The Leela Hotels’ in connection to forthcoming initial public offering. |

(L-R): Ms. Neha Agarwal (Managing Director & Head - Equity Capital Markets, JM Financial Limited); Mr. Anuraag Bhatnagar (Chief Executive Officer, Schloss Bangalore Limited (The Leela Palaces, Hotels and Resorts)); Mr. Ankur Gupta (Managing Partner, Head of Real Estate for Asia Pacific & Middle East, Brookfield); Mr. Ravi Shankar (Head - Asset Management and Chief Financial Officer, Schloss Bangalore Limited (The Leela Palaces, Hotels and Resorts)); and Mr. V Jayasankar (Managing Director and Member of the Board, Kotak Mahindra Capital Company Limited) at the press conference of The Leela Hotels’ in connection to forthcoming initial public offering. |

Schloss Bangalore Ltd, which operates Leela Palaces Hotels & Resorts, on Wednesday said it has fixed a price band of Rs 413-435 per share for its Rs 3,500-crore initial public offering (IPO).

This could be the country's largest IPO in the hospitality sector.

The initial share-sale will be open for public subscription during May 26-28. The one-day bidding for anchor investors will open for a day on May 23, the company said in a statement.

The company's IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and offer for sale (OFS) of stocks valued Rs 1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, according to the red herring prospectus (RHP).

The company is valued at over Rs 14,500 crore at the upper-end of the price band, brokerages said.

Schloss Bangalore, which is backed by Brookfield Asset Management, plans to use the proceeds of the fresh issue to pay loans availed by the company and its subsidiaries and for general corporate purposes.

As of March 2025, the company had a total borrowings of over Rs 3,900 crore, the prospectus showed.

Schloss Bangalore, known for its luxurious hotels and resorts under the "The Leela" brand, had a portfolio of 3,382 keys across 12 operational hotels as of May 31, 2024. It's portfolio includes The Leela Palaces, The Leela Hotels, and The Leela Resorts, located across 10 key Indian destinations.

On the financial front, the company has seen significant financial growth, with operating profit, or EBITDA, increasing from Rs 87.72 crore in FY22 to Rs 600.03 crore in FY24.

According to the HVS report, India's hospitality sector is set for strong growth as the country's GDP is expected to nearly double to USD 7.1 trillion by 2030 from USD 3.6 trillion in 2023.

The luxury hotel segment, which makes up just 17 per cent of the branded hotel market, is underdeveloped. Further, demand for luxury rooms is projected to grow at a rate of 10.6 per cent annually from FY24 to FY28, while supply will increase only 5.9 per cent, the report noted.

Moreover, domestic tourism and foreign tourist arrivals are also expected to rise, with annual growth rates of 13.4 per cent and 7.1 per cent, respectively, from 2024 to 2030, it added.

The company announced that 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Investors can bid for a minimum of 34 equity shares and in multiples of 34 thereafter.

The IPO is being managed by a consortium of 11 merchant bankers -- JM Financial, BofA Securities India, Morgan Stanley India Company, J.P. Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.

Shares of the company are expected to list on the stock exchanges on June 2.

Published on: Wednesday, May 21, 2025, 10:41 PM IST

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