Leela Hotels to launch its ₹3,500cr IPO on May 26
What's the story
Schloss Bangalore, the operator of India's famous Leela brand of luxury hotels, will launch its initial public offering (IPO) on May 26. The company hopes to raise ₹3,500 crore through the IPO. It will comprise a fresh equity issue of ₹2,500 crore and an offer-for-sale (OFS) of shares worth ₹1,000 crore by promoter Project Ballet Bangalore Holdings.
Revision
IPO size reduced
The company has cut its IPO size from the proposed ₹5,000 crore in its draft red herring prospectus (DRHP) filed last September. The IPO's anchor book will open for a day on May 23, and the public offer will close on May 28. The price band for the IPO has been set at ₹413 to ₹435 per share. Investors will be able to bid for a minimum of 34 stocks.
Fund allocation
Funds to be used for debt repayment
Schloss Bangalore intends to utilize ₹2,300 crore from the IPO proceeds toward debt repayment, while the rest will be used for general corporate purposes. The company's total borrowings as of March 2025 were ₹3,908.7 crore. The IPO will have up to 75% reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% reserved for retail investors.
Market standing
Schloss Bangalore's market position
Schloss Bangalore runs 3,553 keys across 13 properties and competes with Indian Hotels, EIH, Chalet Hotels, Juniper Hotels, and ITC Hotels. A consortium of top investment banks including JM Financial, BofA Securities, Morgan Stanley India, and JP Morgan India, among others are managing the IPO. KFin Technologies is the registrar for this issue. Share allotment should be finalized on May 29 and market listing might be done on June 2.