Schloss Bangalore, Parent of The Leela, Files DHRP for ₹5,000 Crore IPO—Big News for Investors
The parent company of The Leela luxury hotels, Schloss Bangalore, has filed papers for an initial public offering (IPO) worth ₹5,000 crore ($599 million) as of September 20.
According to their filing, Schloss plans to issue new shares worth ₹3,000 crore. Additionally, Project Ballet Bangalore Holdings, an affiliate of Brookfield Asset Management, will sell shares worth ₹2,000 crore.
This IPO is expected to be the largest in India’s hospitality sector. The company is working with multiple financial firms, including JM Financial and Morgan Stanley, to manage the IPO.
They are also considering a pre-IPO placement that won’t exceed 20% of the fresh issue size, with more details to come in the red herring prospectus.
The shares will have a face value of ₹10 each, and the funds will be used to repay debt. Brookfield has been investing in Schloss since 2019, helping expand The Leela’s properties in India from 15 to a planned 20 soon.
The company’s financial situation has improved, with losses decreasing from ₹616.8 million to ₹213 million in the fiscal year ending March 2024. Revenue per available room (RevPAR) also rose nearly 23% year-on-year to ₹9,592.
India’s hospitality market is projected to grow from $24.6 billion in 2024 to $31 billion by 2029.
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