New Delhi: Schloss Bangalore, the company operating India's leading luxury hotel chain "The Leela," is launching its Initial Public Offering (IPO) soon. The issue will open on May 26, 2025, and remain open for investment until May 28, 2025.
IPO Size
- Total Amount: ₹3,500 crore
- Fresh Issue: ₹2,500 crore in new equity shares
- OFS: ₹1,000 crore in shares to be sold by promoters
Key Issue Dates
- Opening Date: May 26, 2025
- Closing Date: May 28, 2025
- Listing Expected: June 2, 2025 (on BSE and NSE)
Price Band and Minimum Investment
- Price Band: ₹413 - ₹435 per share
- Lot Size: 34 shares
- Minimum Investment: ₹14,042 (for retail investors)
Grey Market Premium (GMP)
Currently, the GMP for The Leela Hotels IPO is approximately ₹18 per share. Considering the upper price band of ₹435, this represents a premium of approximately 4.14%.
Lead Management and Registrar
The IPO is being managed by the following merchant banks:
- JM Financial
- Kotak Mahindra Capital
- Axis Capital
- Morgan Stanley
- SBI Capital
KFin Technologies is the registrar for this issue.
Company Profile
Schloss Bangalore was established in 2019 and is considered one of India's largest luxury hospitality companies. As of May 2024, the company operates 12 hotels under "The Leela Palaces, Hotels and Resorts," with a total of 3,382 rooms. Five of these properties are wholly owned by the company and are located in Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur.
Additionally, the company operates 67 premium restaurants and bars, along with 12 wellness centers. A luxury spa is also under development at Leela Palace Bengaluru in collaboration with Soneva.
Fund Utilization
The funds raised from the IPO will be used for:
- Approximately ₹2,300 crore will be used to repay or reduce the debt of the company and its subsidiaries.
- The remaining amount will be used for general corporate purposes.
Financial Track Record
- FY22 Loss: ₹319 crore
- FY24 Loss: ₹2.1 crore
- FY22 Revenue: ₹415 crore
- FY24 Revenue: ₹1,226 crore
The company has shown significant improvement in its performance over the past few years, particularly after the impact of COVID-19.
Investment Opportunity
The Leela Hotels IPO could be a great opportunity for investors who see brand value and long-term growth potential in the hospitality sector. Strong financial recovery and a prestigious brand make it an attractive option.
If you are interested in participating in the upcoming IPO and are enthusiastic about investing in the luxury hotel industry, this Leela Hotels issue might be a suitable option for you. Remember to consult your financial advisor before investing.
