11 hours ago
Schloss Bangalore, owner of Indian luxury hotel chain ’The Leela’, has set a price band of ₹413 to ₹435 per share for its ₹3,500 crore initial public offering (IPO). Investors can bid for a minimum of 34 shares and in multiples thereof.
The IPO will hit Dalal Street on May 26, and will close for subscription on May 28, with large anchor investors getting to bid on May 23.
At the higher end of the price band, Schloss Bangalore will have a market capitalisation of ₹14,527 crore.
Schloss has trimmed the size of its offering by 30%, its prospectus showed on Tuesday, eight months after it filed draft papers for an IPO, joining a growing list of firms that have tempered their issues to go public amid market uncertainty.
Brookfield-backed Schloss will sell fresh shares worth ₹2,500 crore, down from an initially planned ₹3,000 crore. Brookfield plans to sell shares worth ₹1,000 crore, half of its original plan.
About 75% of the IPO size has been set aside for qualified institutional buyers, of which up to 60% portion (that comes to ₹1,575 crore) may be allocated to anchor investors . Further, 15% of the issue size is reserved for non-institutional investors, and the rest 10% for retail investors.
Schloss Bangalore plans to use ₹2,300 crore out of net fresh issue proceeds for repayment of its debt, and the remainder for general corporate purposes.
Established on March 20, 2019, Schloss Bangalore is a luxury hospitality company operating under "The Leela" brand in India. It owns, operates, manages, and develops luxury hotels and resorts, offering premier accommodations and personalised services inspired by Indian hospitality.
As of May 2024, the company operates 12 properties with 3,382 keys under The Leela Palaces, Hotels, and Resorts.
Five of these — located in Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur — are wholly owned.
Despite reporting losses of ₹36 crore for the period ended May 2024, the company has narrowed its losses from ₹319 crore in FY22 to ₹2.1 crore in FY24. Revenues surged to ₹1,226 crore in FY24 from ₹415 crore in FY22, showcasing a sharp turnaround in business performance post-Covid.
JM Financial, Bofa Securities India, Morgan Stanley India, JP Morgan India, Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets, Iifl Securities, Motilal Oswal Investment Advisors, SBI Capital Markets are the book running lead managers, while Kfin Technologies is the registrar for the Leela Hotels IPO.
The allotment for the Leela Hotels IPO is expected to be finalised on May 29, 2025. Leela Hotels IPO will be list on BSE, NSE with a tentative listing date fixed as June 2, 2025.
