Leela Hotels Owner Schloss Bangalore Sets IPO Price Band at ₹413-435 Amidst Reduced Issue Size

Schloss Bangalore, the operator of famous Leela Palaces, Hotels, and Resorts, has formally fixed the price band for its highly awaited initial public offering (IPO) at ₹413-435 per share. The luxury hospitality major, supported by Brookfield Asset Management, is looking to raise ₹3,500 crore through this IPO, which will be open for public subscription from May 26 to May 28, 2025. Anchor investors will have an early bidding window on May 23, and shares are expected to list on the BSE and NSE on June 2.

Key Highlights
IPO Size: The issue includes a new issue of ₹2,500 crore and an offer-for-sale (OFS) of ₹1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC).

Smaller Issue Size: The size of the IPO has been reduced by 30% from the initially proposed ₹5,000 crore, indicating a general trend among Indian firms to reduce public issues during volatile markets.

Use of Proceeds
Schloss Bangalore intends to use ₹2,300 crore from the IPO to prepay/repay borrowings, while the rest will be invested in general corporate purposes.

Financial Performance
The company has demonstrated a robust turnaround, with the reduction in losses from ₹319 crore in FY22 to mere ₹2.1 crore in FY24, while revenues have jumped to ₹1,226 crore in FY24 from ₹415 crore in FY22.

Portfolio: As of May 2024, Schloss Bangalore has 12 luxury properties with 3,382 rooms, 67 fine dining restaurants and bars, and 12 wellness centers under The Leela brand.

Market Significance: This IPO would be India's second-largest public float in 2025 and is a major milestone for the country's luxury hospitality industry.

The IPO is overseen by a consortium of top investment banks, including JM Financial, Kotak Mahindra Capital, Axis Capital, Morgan Stanley, and SBI Capital, with registrar KFin Technologies.

Source: Reuters, Economic Times, Moneycontrol, Outlook Business, IPO Watch, News18, Business Recorder