The Leela Hotels fixes price band at Rs 413-435 for upcoming IPO. Check details

Schloss Bangalore-operated The Leela brand of luxury hotels has announced a price band of Rs 413-435 for its upcoming initial public offering (IPO), which will be available to bid for the public from May 26 to May 28.

The issue includes a fresh issue of shares aggregating to Rs 2,500 crore and an offer for sale (OFS) of up to Rs 1,000 crore, making the total issue size of Rs 3,000 crore.

Shareholders can make a bid of a minimum of 34 shares and in multiples of 24 thereof.

Anchor investor bidding will start from May 23, a day before the issue opens for public subscription.

The offer is being made through a book-building process, and the shares of the company are proposed to be listed on the NSE and BSE.

The company intends to utilise Rs 2,300 crore from the IPO proceeds to repay or prepay borrowings at both the parent level and its key subsidiaries, while the remaining funds will be allocated for general corporate purposes.

JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Capital, ICICI Securities, Motilal Investment Advisors and SBI Capital Markets are the book running lead managers to the issue, while KFin Technologies is the registrar to the issue.

Schloss Bangalore, established in 2019, is one of India’s largest luxury hospitality companies by room count. As of May 2024, the company manages 12 properties with a total of 3,382 keys under the ‘The Leela Palaces, Hotels, and Resorts' brand.

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Out of these, five properties — located in Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur — are fully owned. These destinations showcase a fusion of regal Indian architecture and contemporary hospitality, catering to upscale business and leisure travellers.

Beyond accommodations, the company also operates 67 fine-dining restaurants and bars, along with 12 wellness centers. Its flagship spa at The Leela Palace Bengaluru is being developed in partnership with the luxury wellness brand Soneva.

The Leela financial performance

Despite posting losses of Rs 36 crore for the period ended May 2024, the company significantly narrowed its losses from Rs 319 crore in FY22 to Rs 2.1 crore in FY24. Revenues grew to Rs 1,226 crore in FY24 from Rs 415 crore in FY22, showcasing a sharp turnaround in business performance post-COVID.

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