IPO: Leela Palace Parent Firm, Schloss Bangalore, Raises Rs 1,575 Crore From Anchor Investors
Schloss Bangalore Ltd, the company behind The Leela Palaces Hotels and Resorts, has successfully raised Rs 1,575 crore from anchor investors just days before its upcoming initial public offering (IPO).
According to a circular uploaded to the BSE website on Friday, the anchor placement attracted strong interest from a mix of domestic mutual funds, insurance firms, and global financial institutions.
Indian investment houses such as HDFC Mutual Fund, ICICI Prudential MF, Nippon India MF, Mirae MF, and Invesco MF participated in the anchor book, alongside Aditya Birla Sun Life Insurance Company, reported PTI.
On the global front, enthusiasm came from sovereign wealth funds and foreign portfolio investors, including Think Invest, Fidelity, Norges Bank, Whiteoak, Lunate, UC Regents, TT International, and Ward Ferry.
In total, Schloss Bangalore allotted 36,206,896 equity shares to 47 investors at a price of Rs 435 per share, bringing in Rs 1,575 crore through the anchor book.
Schloss Bangalore IPO: Dates, Price Band, And More
The IPO will open for public subscription between May 26 and May 28, with a price range set at Rs 413 to Rs 435 per equity share. Schloss Bangalore’s public issue is expected to raise Rs 3,500 crore, comprising a fresh issuance of shares worth Rs 2,500 crore and an offer-for-sale (OFS) component of Rs 1,000 crore by its promoter, Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.
Brookfield Asset Management-backed Schloss Bangalore plans to utilise the fresh capital primarily to repay outstanding loans taken by the company and its subsidiaries, in addition to general corporate requirements. As per disclosures in the red herring prospectus, total borrowings stood at over rs 3,900 crore as of March 2025.
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Strong Financials and Expanding Portfolio
Operating under The Leela brand, Schloss Bangalore manages a premium hospitality portfolio that includes The Leela Palaces, The Leela Hotels, and The Leela Resorts. As of May 31, 2024, the group operated 12 properties with a total inventory of 3,382 keys, spread across 10 destinations in India.
The company posted a sharp improvement in financial performance in recent years. Its earnings before interest, tax, depreciation and amortisation (EBITDA) surged from Rs 87.72 crore in FY22 to Rs 600.03 crore in FY24, underlining strong operational recovery and profitability.
To manage the IPO process, Schloss Bangalore has appointed a consortium of 11 lead managers. The list includes 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.
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