SOURCE : NEW18 NEWS
Last Updated:May 24, 2025, 08:18 IST
The Leela Hotels IPO is set to open for public subscription from May 26 to May 28.
The Leela Hotels IPO is priced in the range of Rs 413-435 per share.
Leela Hotels IPO: Schloss Bangalore Ltd, the company behind the iconic Leela Palaces, Hotels and Resorts, has raised Rs 1,575 crore from anchor investors ahead of its highly anticipated Rs 3,500-crore initial public offering (IPO), which is set to open for public subscription from May 26 to May 28.
Anchor Book Sees Strong Demand from Domestic and Global Investors
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According to a circular on BSE, Schloss Bangalore allotted 36,206,896 equity shares at Rs 435 apiece to 47 institutional investors. The anchor book saw widespread participation from major domestic mutual funds, including HDFC MF, ICICI Prudential MF, Nippon India MF, Mirae MF, Invesco MF and Aditya Birla Sun Life Insurance.
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Global investor interest was equally robust with participants such as Fidelity, Norges Bank, Think Investments, Whiteoak, TT International, UC Regents, Lunate, and Ward Ferry.
IPO Details: Price Band, Lot Size, GMP and Listing Date
The IPO has been priced in the range of Rs 413-435 per share. It comprises a fresh issue of shares worth Rs 2,500 crore and an offer for sale (OFS) of shares worth Rs 1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.
At the upper end of the price band, the company is valued at over Rs 14,500 crore.
As per the latest reports, the grey market premium (GMP) for Leela Hotels IPO is being tracked at around Rs 15.
Shares are expected to be listed on the BSE and NSE on June 2.
A total of 75% of the IPO is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.
Investors can bid for a minimum of 34 shares and in multiples thereafter.
Use of Proceeds and Growth Plans
Schloss Bangalore plans to use the net proceeds from the fresh issue primarily to repay existing borrowings, which stood at over Rs 3,900 crore as of March 2025, and for general corporate purposes. The management stated that the IPO will help the company become debt-free.
Additionally, the company is investing Rs 1,131 crore to develop five company-owned luxury hotels in Agra, Srinagar, Bandhavgarh, Ranthambore, and Ayodhya, with a total of 475 rooms expected to be operational by 2028.
Company Background: Strong Brand, Growing Portfolio
Schloss Bangalore, acquired by Brookfield Asset Management in 2019, operates premium hospitality properties under “The Leela” brand. As of May 31, 2024, it had a portfolio of 3,382 keys across 12 operational hotels in 10 Indian cities.
The company runs a total of 13 hotels (5 owned and 8 managed) and has 678 keys under development. It owns 35% of its total portfolio, while 65% is operated through management agreements.
Financials: Rapid Growth in Profitability
The company has shown significant improvement in financials, with its EBITDA jumping from Rs 87.72 crore in FY22 to Rs 600.03 crore in FY24, reflecting strong operational efficiency and demand in the luxury hospitality segment.
Hospitality Sector Outlook: Bullish Growth Projections
According to HVS, the Indian hospitality sector is poised for exponential growth, driven by a projected doubling of GDP to USD 7.1 trillion by 2030. Demand for luxury hotel rooms is expected to grow at 10.6% CAGR between FY24 and FY28, while supply will lag at 5.9%.
Domestic and foreign tourist arrivals are also forecast to grow at 13.4% and 7.1% CAGR, respectively, from 2024 to 2030.
Merchant Bankers
The IPO is being managed by a consortium of 11 merchant bankers, including JM Financial, BofA Securities India, Morgan Stanley India, JP Morgan India, Kotak Mahindra Capital, Axis Capital, Citi, IIFL Securities, ICICI Securities, Motilal Oswal, and SBI Capital Markets.
- First Published:
May 24, 2025, 08:18 IST
