Leela Hotels IPO: Brookfield-backed Schloss Bangalore raises ₹1,575 crore from anchor investors ahead of issue

Leela Hotels IPO: Brookfield-backed Schloss Bangalore Ltd, which owns luxury hospitality brand 'The Leela' Palaces, Hotels and Resorts has garnered ₹1,575 crore from anchor investors, days before its initial share-sale opening for public subscription.

The anchor book has received widespread participation from domestic institutional investors including HDFC Mutual Fund (MF), ICICI Prudential MF, Nippon India MF, Mirae MF and Invesco MF and Aditya Birla Sun Life Insurance Company, according to a circular uploaded on BSE's website on Friday. Global interest was equally notable with very strong demand from sovereign and FPIs including Think Invest, Fidelity, Norges Bank, Whiteoak, Lunate, UC Regents, TT International and Ward Ferry.

According to the circular, Schloss Bangalore allotted 36,206,896 equity shares to 47 funds, comprising domestic and global investors, at ₹435 apiece, for ₹1,575 crore.

The issue, with a price band of ₹413-435 per share will be open for public subscription during May 26-28.

The company's ₹3,500-crore IPO is a combination of a fresh issue of equity shares worth ₹2,500 crore and offer for sale (OFS) of stocks valued ₹1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.

Schloss Bangalore, which is backed by Brookfield Asset Management, plans to use proceeds of fresh issue to pay loans availed by the company and its subsidiaries and for general corporate purposes.

As of March 2025, the company had total borrowings of over ₹3,900 crore, the red herring prospectus showed.

Schloss Bangalore, known for its luxurious hotels and resorts under "The Leela" brand, had a portfolio of 3,382 keys across 12 operational hotels as of May 31, 2024. Its portfolio includes The Leela Palaces, The Leela Hotels, and The Leela Resorts, located across 10 destinations in the country.

On the financial front, the company has seen significant financial growth, with operating profit or EBITDA increasing from ₹87.72 crore in FY22 to ₹600.03 crore in FY24.

The IPO is being managed by a consortium of 11 merchant bankers -- JM Financial, BofA Securities India, Morgan Stanley India Company, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.