Schloss Bangalore IPO: Brookfield-backed Leela Hotels raises ₹1,575 cr from anchor investors

Ahead of opening of the IPO next week, Schloss Bangalore Ltd, which owns luxury hospitality brand 'The Leela' Palaces, Hotels and Resorts, has raised ₹1,575 crore from anchor investors. The

Brookfield-backed luxury hotel chain operator allotted 36,206,896 equity shares to 47 funds, including domestic and global investors, at upper end of the price band at ₹435 per share, as per

the exchange data.

The anchor book saw participation from marquee sovereign and institutions such as Think Invest, Fidelity, Norges Bank, Whiteoak, Lunate, UC Regents, TT International and Ward Ferry. On the

domestic front, HDFC Mutual Fund (MF), ICICI Prudential MF, Nippon India MF, Mirae MF and Invesco MF and Aditya Birla Sun Life Insurance Company participated in the anchor book.

Here’s all you need to know about Leela Hotels IPO:

The three-day IPO of Schloss Bangalore will hit Dalal Street on May 26 and the issue will close on May 28. The allotment of shares to eligible applicants is expected to be finalised on May

29, while shares are slated to be listed on the BSE, NSE on June 2, 2025.

The company has set price band at ₹413-435 per share for the public issue, looking to raise ₹3,500 crore at the upper end of the issue price, valuing the company at around ₹10,155 crore.

The IPO is a combination of fresh issue of 5.75 crore shares amounting to ₹2,500 crore and offer for sale of 2.30 crore shares worth ₹1,000 crore by selling shareholders.

The lot size is 34 shares and in multiple thereafter, which means the minimum application amount for retail investors will be ₹14,042 for one lot.

As per the RHP filed with the Sebi, the company has reserved 75% of the shares for qualified institutional buyers (QIB), up to 15% for non-institutional institutional investors (NII), and

remaining 10% for retail investors.

Schloss intends to use the net proceeds from the fresh issue for repayment of certain outstanding borrowings availed by the company. A part of the capital will be used for general corporate

purposes. Out of ₹2,500 crore, the company will utilise ₹2,300 crore for paying debts.

As of May 31, 2024, Schloss Bangalore is one of India's largest luxury hospitality companies by number of keys, comprising of 3,382 keys across 12 operational hotels. The portfolio includes

The Leela Palaces, The Leela Hotels, and The Leela Resorts. Besides, it operates five owned hotels, six hotels under hotel management agreements, and one hotel owned and operated by a

third-party owner under a franchise arrangement.

Going ahead, Schloss plans to expand its portfolio with eight new hotels, aggregating 833 keys or 24.63% of existing keys through 2028, which will be either developed, owned or managed by

it. This includes a modern palace hotels in Agra (Uttar Pradesh) and Srinagar (Union Territory of Jammu and Kashmir), resorts in Ranthambore (Rajasthan) and Bandhavgarh (Madhya Pradesh), a

hotel in Hyderabad (Telangana) and serviced apartments in Mumbai’s (Maharashtra) international airport district.

“These are currently in various stages of acquisition and development. Our growth pipeline comprises of modern palaces, hotels and resorts including expansion in new segments such as

wildlife, spiritual and heritage tourism, diversifying our geographical footprint across additional cities and tourist destinations,” the company mentioned in the IPO paper.

For the year ended March 31, 2025, Schloss reported a revenue of ₹1,406 crore, while net profit stood at around ₹48 crore.

JM Financial Limited, Bofa Securities India Limited, Morgan Stanley India Company Pvt Ltd, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited,

Citigroup Global Markets India Private Limited, Iifl Securities Ltd, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited are the book running lead managers of the Leela

Hotels IPO. Kfin Technologies Limited is the registrar for the issue.