- The three-day IPO will close on Wednesday, May 28
- The price band is in the range of ₹413 to ₹435 per equity share
- The minimum lot size for an application is 34 shares
- The anchor investor bid period shall be one working day before the issue opening date-Friday, May 23
NE BUSINESS BUREAU
GANDHINAGAR, MAY 22
The public issue of Brookfield-backed Schloss Bangalore, which owns the luxury hotel brand The Leela, will open on Monday, May 26 and close on Wednesday, May 28. A price band of ₹413-435 per share has been set for the IPO. The minimum lot size for an application is 34 shares. The anchor investor bid period shall be one working day before the issue opening date -Friday, May 23.
Incidentally, the issue size has been trimmed by around 30 per cent from its earlier plans. The issue will see Schloss sell fresh issue of 57.5 million shares worth ₹2,500 crore, while investor Brookfield plans to sell an offer for sale (OFS) of 23 million shares worth ₹1,000 crore.
The company intends to utilise the funds raised from the fresh issue for repayment/ prepayment/ redemption of certain outstanding borrowings, interest accrued and prepayment penalties as applicable and availed by the company and some of its subsidiaries.
The Leela is one of the largest luxury hotel chains in the country. Its portfolio as of March 31, 2025, consisted of 3,553 keys across 13 operational hotels, including The Leela Palaces, The Leela Hotels and The Leela Resorts. It has five owned hotels and seven, where it has hotel management agreements. One hotel is under a franchise arrangement.
For the year ended March 2025, its average room rate at its owned properties was ₹22,545, while revenue per available room stood at ₹15,306, both 1.4 times the luxury hospitality segment average in India, it said.
Schloss has plans to expand the business with seven new hotels, adding about 678 keys through 2028, that it will develop, own or manage.
“Our growth pipeline comprises 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. This includes modern palace hotels in Agra (Uttar Pradesh) and Srinagar (Jammu and Kashmir), resorts in Ranthambore (Rajasthan) and Bandhavgarh (Madhya Pradesh) and serviced apartments in Mumbai’s international airport,” Anuraag Bhatnagar, CEO, said.
Answering a question over the hospitality giant’s business in Gujarat, Anuraag Bhatnagar said, “Gujarat has always been one of the key markets for it.”
Up to 75 percent of the public issue size is reserved for qualified institutional buyers, of which up to 60 percent portion (that comes to ₹1,575 crore) may be allocated to anchor investors. Further, 15 percent of the offer size is set aside for non-institutional investors, and the remainder 10 percent for retail investors.
The company, which runs 13 hotels, will use proceeds from the sale of new shares to repay its borrowings. Schloss Bangalore intends to utilise ₹2,300 crore out of net fresh issue proceeds for repayment of its debt, and the remainder for general corporate purposes.
In the financial year 2024-25 (FY25), Schloss Bangalore reported consolidated revenue from operations of ₹1,300.5 crore, up 11 per cent from ₹1,171.4 crore in the previous fiscal. Its profit after tax (PAT) stood at ₹49.2 crore in FY25, compared to a loss of ₹2.12 crore in FY24.
The shares will be listed on both BSE and NSE.
The book running lead managers handling the big-ticket size public issue are JM Financial, BofA Securities India, Morgan Stanley India Company, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Capital Services, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets. KFin Technologies is the registrar to the issue.
