The Leela Palaces, Hotels & Resorts to Launch IPO on May 26

Schloss Bangalore, the company behind The Leela Palaces, Hotels & Resorts, is set to launch its ₹3,500 crore Initial Public Offering (IPO) on May 26, 2025. The red herring prospectus was filed with the Registrar of Companies on May 20, following SEBI approval granted in December 2024.

IPO Breakdown 

The IPO consists of a fresh issue of equity shares worth ₹2,500 crore, and an offer-for-sale (OFS) of ₹1,000 crore by Project Ballet Bangalore Holdings (DIFC), a Brookfield Asset Management subsidiary. The anchor investor portion will open on May 23, and the issue will close for public subscription on May 28. Finalisation of share allotment is scheduled for May 29, and listing is expected to take place on the stock exchanges from June 2.

Use of Proceeds

Out of the fresh issue proceeds, the company plans to use ₹2,300 crore to repay outstanding borrowings. As of March 2025, Schloss Bangalore and its subsidiaries had total borrowings of ₹3,908.7 crore. The remaining funds will be allocated for general corporate purposes.

Read more: Belrise Industries IPO Set to Open from May 21

Allocation Structure

Upto 75% of the issue is reserved for Qualified Institutional Buyers (QIBs), with 60% of this QIB portion (₹1,575 crore) eligible for allocation to anchor investors. 15% of the issue is reserved for non-institutional investors and 10% for retail investors. The price band will be announced on May 21.

Company Operations

Schloss Bangalore operates a portfolio of 13 luxury hotels, under The Leela Palaces, Hotels, and Resorts brands, with a total of 3,553 operational keys. It competes with listed hospitality companies such as Indian Hotels Company, EIH, Chalet Hotels, Juniper Hotels, and ITC Hotels.

Conclusion 

While several companies have delayed or scaled down IPOs in 2025 due to market volatility, Schloss Bangalore’s public issue is currently the second-largest IPO of the year.

KFin Technologies is the registrar of the issue. The offering is being managed by a group of 12 lead book-running managers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.