Leela Palaces, Hotels & Resorts, a luxury hospitality brand backed by Brookfield Asset Management through Schloss Bangalore, is set to launch its initial public offering (IPO) on May 26, 2025. The company plans to raise ₹3,500 crore, with ₹2,300 crore from the proceeds earmarked to repay debt, aiming to become completely debt-free after the listing.
IPO Size and Pricing
Originally planned at ₹5,000 crore, the IPO size was revised downward by 30% to ₹3,500 crore. The issue will remain open until May 28, with a price band fixed between ₹413 and ₹435 per share. Investors can bid starting at a minimum of 34 shares. This IPO marks the largest in India’s hospitality sector to date.
Allocation of Shares and Investors
Of the total issue, 75% is reserved for qualified institutional buyers (QIBs), with 60% of that allocation (₹1,575 crore) dedicated to anchor investors. Non-institutional investors will get 15% of the shares, while retail investors are allotted 10%.
Company Operations and Future Plans
Schloss Bangalore operates 3,382 keys across 12 hotels, including five owned properties, six managed hotels, and one franchised hotel. The company aims to expand into niche travel areas such as wildlife, spiritual, and heritage tourism to diversify its portfolio.
Leadership and IPO Management
Anuraag Bhatnagar, CEO of Schloss Bangalore, emphasized that the ₹2,300 crore from the IPO proceeds will be fully utilized to clear the company’s debt, making it net debt-free post-IPO. Several prominent investment banks are managing the IPO, including JM Financial, Morgan Stanley India, J.P. Morgan India, and others. KFin Technologies is appointed as the registrar for the issue.
