IPO Structure and Key Details
Offering Overview
- Issue Type: Book-built IPO following SEBI regulations
- Total Issue Size: Rs 35 bn, making it the largest hospitality IPO in Indian market history
- Fresh Issue: 57.5 million (m) equity shares amounting to Rs 25 bn
- Offer for Sale (OFS): 23 m equity shares worth Rs 10 bn by promoters, including Project Ballet Bangalore Holdings (DIFC) Pvt Ltd and other Brookfield entities
- Price Band: Rs 413 to Rs 435 per share (face value Rs 10)
- Market Lot: 34 shares (minimum investment requirement of Rs 14,042 for retail investors)
Allocation Structure
- Qualified Institutional Buyers (QIBs): 75% of the issue size
- Non-Institutional Investors (HNIs): 15% of the issue size
- Retail Individual Investors: 10% of the issue size
- Employee Reservation: Additional shares reserved for eligible employees with a discount of Rs 20 per share
IPO Calendar
- Anchor Investor Bidding Date: 25 May 2025
- Issue Opening Date: 26 May 2025
- Issue Closing Date: 28 May 2025
- Allotment Finalization: 29 May 2025
- Refund Initiation: 30 May 2025
- Credit of Shares to Demat Account: 31 May 2025
- Listing Date: 2 June 2025 (on both BSE and NSE)
Key Participants
- Registrar: KFin Technologies Limited
- Lead Book Running Managers: Consortium of 11 prestigious financial institutions, including JM Financial, Morgan Stanley, JP Morgan, Kotak Mahindra Capital, ICICI Securities, Axis Capital, SBI Capital Markets, HDFC Bank, Citi Group, Bank of America Securities, and Credit Suisse
- Pre-IPO Placement: The company reserves the right to consider a potential Rs 6 bn private placement prior to filing the Red Herring Prospectus (RHP), which would correspondingly reduce the fresh issue size
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Fund Utilization
The net proceeds from the fresh issue will be strategically deployed to strengthen Leela Hotels' financial position and support future growth initiatives.
Approximately Rs 21 bn is allocated for debt reduction, specifically to repay or prepay borrowings of the company and its key subsidiaries including Schloss Chanakya, Schloss Chennai, Schloss Udaipur, and TPRPL.
This debt reduction is expected to substantially lower interest costs and improve profitability metrics.
The remaining funds will be directed toward general corporate purposes, encompassing strategic initiatives, working capital requirements, and capitalizing on emerging growth opportunities within the luxury hospitality landscape.
Company Overview and Business Model
Schloss Bangalore Limited, incorporated in 2019, has rapidly established itself as a formidable player in India's luxury hospitality landscape.
The company operates under the iconic "Leela" brand, which has been synonymous with Indian luxury hospitality for over three decades.
The portfolio currently comprises 12 luxury hotels with 3,382 keys (rooms) strategically distributed across 10 prime destinations throughout India.