Leela Hotels operator raises ₹1,575cr from 47 anchor investors
What's the story
Brookfield-backed Schloss Bangalore Limited, the operator of The Leela Palaces, Hotels & Resorts, has raised ₹1,575 crore from 47 leading anchor investors.
This was done at the upper end of the price band of ₹435 per equity share.
The funds were issued through over 3.62 crore equity shares to these anchor investors.
Goldman Sachs and Fidelity are among the top global funds that have invested in the company.
Upcoming IPO
IPO set to open on May 26
The much-awaited Initial Public Offering (IPO) of Schloss Bangalore will open for public subscription between May 26 and May 28.
The company has fixed the price band at ₹413-₹435 per share for this three-day issue.
The ₹3,500 crore IPO includes a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹1,000 crore.
Business operations
Luxury hospitality firm operates 12 properties
Incorporated in 2019, Schloss Bangalore is one of India's largest luxury hospitality firms by number of rooms.
As of May 2024, it operates 12 properties with 3,382 keys under The Leela Palaces, Hotels and Resorts.
The company also operates 67 fine-dining restaurants and bars as well as 12 wellness centers at these locations.
Fund allocation
IPO proceeds to be used for debt repayment
The company intends to utilize ₹2,300 crore from the IPO proceeds to repay/prepay borrowings across itself and key subsidiaries.
The rest will be used for general corporate purposes.
Although Schloss Bangalore posted losses of ₹36 crore for the period ended May 2024, it managed to significantly narrow its losses from ₹319 crore in FY22 to ₹2.1 crore in FY24.