Schloss Bangalore Limited, the parent company of The Leela Palaces, Hotels and Resorts, is set to launch its Schloss Bangalore Limited IPO (Leela Hotels IPO) Detail to raise ₹5,000 crore. Here’s a comprehensive overview of the IPO:
Leela Hotels IPO Timeline
- Open Date: May 26, 2025
- Close Date: May 28, 2025
- Basis of Allotment: May 29, 2025
- Initiation of Refunds: May 30, 2025
- Credit of Shares to Demat Accounts: May 30, 2025
- IPO Listing Date: June 2, 2025
IPO Overview
- Dates: Opens on May 26, 2025, and closes on May 28, 2025
- Issue Size: ₹5,000 crore
- Fresh Issue: ₹3,000 crore
- Offer for Sale (OFS): ₹2,000 crore by Project Ballet Bangalore Holdings (DIFC), an affiliate of Brookfield Asset Management
- Face Value: ₹10 per share
- Price Band: To be announced
- Lot Size: To be announced
- Listing Exchanges: BSE and NSE
- Listing Date: Expected on June 2, 2025
Promoters of Leela Hotels IPO with details
Schloss Bangalore Limited, the parent company of The Leela Palaces, Hotels and Resorts, is primarily promoted by entities affiliated with Brookfield Asset Management.
The main promoter is Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, which is an affiliate of Brookfield Asset Management.
This entity is also participating in the IPO as the promoter selling shareholder, offering shares worth ₹2,000 crore in the Offer for Sale segment.
Promoter Group Structure:
The promoter group comprises several entities, all of which are affiliates of Brookfield Asset Management:
- Project Ballet Bangalore Holdings (DIFC) Pvt Ltd: The principal promoter and selling shareholder in the IPO.
- BSREP III Joy (Two) Holdings (DIFC) Ltd: An investment holding company under Brookfield’s BSREP III fund.
- BSREP III Tadoba Holdings (DIFC) Pvt Ltd: Another investment entity within the BSREP III fund structure.
- Project Ballet Chennai Holdings (DIFC) Pvt Ltd: Focused on investments in Chennai.
- Gandhinagar Holdings (DIFC) Pvt Ltd: Focused on investments in Gandhinagar.
- Project Ballet HMA Holdings (DIFC) Pvt Ltd: Focused on hotel management agreements.
- Udaipur Holdings (DIFC) Pvt Ltd: Focused on investments in Udaipur.
All these entities are ultimately controlled by BSREP III India Ballet Holdings (DIFC) Limited, which serves as the holding company for Brookfield’s investments in India.
Leela Hotels IPO Promoter Holding
As of the latest available information, Schloss Bangalore Limited, the parent company of The Leela Palaces, Hotels and Resorts, is entirely owned by its promoters.
- Pre-IPO Promoter Holding: 100%
- Post-IPO Promoter Holding: To be announced (expected to decrease due to the Offer for Sale and issuance of new shares)
The promoters of Schloss Bangalore Limited are entities affiliated with Brookfield Asset Management, a global alternative asset manager.
The primary promoter is Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, an affiliate of Brookfield Asset Management.
This entity is also participating in the IPO as the promoter selling shareholder, offering shares worth ₹2,000 crore in the Offer for Sale segment.
Ownership and Shareholding:
Prior to the IPO, these promoter entities collectively held 100% of Schloss Bangalore Limited. Post-IPO, their shareholding will decrease due to the Offer for Sale and the issuance of new shares.
Brookfield Asset Management’s Role:
Brookfield Asset Management is a global alternative asset manager with extensive investments in real estate, infrastructure, renewable power, and private equity. Through its BSREP III fund, Brookfield has consolidated its investments in India’s hospitality sector, including The Leela brand, under Schloss Bangalore Limited.
Lead Managers
- Morgan Stanley
- BofA Securities
- J.P. Morgan
- Citigroup Global Markets India
Application Details
- Registrar: KFin Technologies Limited
- Retail Quota: 10%
- Qualified Institutional Buyers (QIB): 75%
- Non-Institutional Investors (NII): 15%
- Application Process: Investors can apply via ASBA through their bank’s net banking or UPI through registered brokers.
About Schloss Bangalore Limited
Schloss Bangalore Limited is the parent company of The Leela Palaces, Hotels and Resorts, a prominent luxury hospitality brand in India. The company was incorporated on March 20, 2019, and is headquartered at The Leela Palace, Diplomatic Enclave, Africa Avenue, Netaji Nagar, South Delhi, 110023, India .
Company Overview
- Incorporation Date: March 20, 2019
- Headquarters: New Delhi, India
- Ownership: 100% owned by entities affiliated with Brookfield Asset Management through its BSREP III fund .
- Awards: Over 250 awards since January 2021, including consecutive #1 rankings in 2020 and 2021 by Travel + Leisure World’s Best Awards .
Portfolio:
- 5 owned hotels
- 6 managed hotels
- 1 franchised hotel
Schloss Bangalore Limited Financial Information
Here’s a detailed overview of Schloss Bangalore Limited financial performance, based on the latest available data:
Financial Performance Overview
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue from Operations | ₹380.1 Cr | ₹860.1 Cr | ₹1,171.5 Cr |
| EBITDA | ₹87.7 Cr | ₹423.6 Cr | ₹600.0 Cr |
| EBITDA Margin | 23.1% | 49.2% | 51.2% |
| Net Profit / (Loss) | -₹319.8 Cr | -₹61.7 Cr | -₹2.1 Cr |
| Basic EPS | -₹18.2 | -₹3.5 | -₹0.12 |
| Net Asset Value (NAV) | -₹160.6 | -₹160.6 | -₹160.6 |
| Total Borrowings | ₹3,768.1 Cr | ₹3,961.8 Cr | ₹4,052.5 Cr |
| Finance Costs | ₹324.9 Cr | ₹359.1 Cr | ₹432.6 Cr |
| Interest Coverage Ratio | 1.18 | 1.39 | 1.39 |
Key Highlights
- Revenue Growth: The company has demonstrated significant revenue growth, with a 36.2% increase in FY24 compared to 2023.
- EBITDA Improvement: EBITDA improved from 23.1% in 2022 to 51.2% in 2024, indicating operational efficiency.
- Reduced Losses: Net losses narrowed to ₹2.1 crore in 2024 from ₹319.8 crore in 2022.
- Debt Levels: Total borrowings increased to ₹4,052.5 crore in 2024, with finance costs rising to ₹432.6 crore.
Operational Metrics
- Revenue per Available Room (RevPAR): In 2024, RevPAR stood at ₹9,592, nearly three times the industry average, highlighting the company’s strong market position.
- Average Room Rate (ARR): The average room rate for FY24 was ₹15,212.77, indicating premium pricing aligned with the luxury segment.
- Occupancy Rate: The average occupancy rate was 63.05%, reflecting healthy demand for the company’s properties.
Future Outlook
- Schloss Bangalore Limited plans to utilize the proceeds from its IPO to repay outstanding debts, which stood at ₹4,052.5 crore as of May 2024. The company aims to reduce its debt burden and enhance financial stability.
- The luxury hospitality market in India is projected to grow significantly, providing Schloss Bangalore with opportunities for expansion and increased profitability.
Objects of the Issue
The Objects of the Issue for the Schloss Bangalore Limited IPO (Leela Hotels IPO) are clearly outlined in the Draft Red Herring Prospectus (DRHP). Here’s a detailed breakdown:
1) Repayment or Prepayment of Indebtedness
- Purpose: To reduce outstanding borrowings of the company and its subsidiaries.
- Allocation: Approximately ₹2,700 crore (i.e., 90% of the fresh issue proceeds).
- Benefit: Lowering debt will reduce interest burden, improve leverage ratios, and strengthen the balance sheet.
2) General Corporate Purposes
- Purpose: To support working capital, strategic initiatives, brand development, and potential expansion.
- Allocation: The remaining amount after debt repayment (~₹300 crore).
- Benefit: Enhances operational flexibility and growth readiness.
Summary Table
| Use of Proceeds | Estimated Amount (₹ Cr) | Purpose |
|---|---|---|
| Repayment/prepayment of borrowings | 2,700 | Debt reduction across company & subs |
| General corporate purposes | 300 | Expansion, operations, branding, etc. |
| Total (Fresh Issue) | 3,000 | – |
| Offer for Sale (OFS) | 2,000 | To promoter entity, not to the company |
| Total Issue Size | 5,000 | – |
Strengths of Leela Hotels IPO
1. Iconic Luxury Brand with Global Recognition
- The Leela is a renowned luxury hospitality brand in India, celebrated for its opulent properties and exceptional service standards. It has garnered over 250 industry awards since January 2021, including top rankings in Travel + Leisure and Condé Nast Traveler.
2. Strategic Ownership by Brookfield Asset Management
- Being wholly owned by Brookfield Asset Management, a global alternative asset manager, provides Schloss Bangalore with robust financial backing and strategic guidance.
3. Prime Portfolio in High-Barrier Markets
- The company owns five flagship hotels located in Indian cities like Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur. These markets have high entry barriers, ensuring sustained demand and limited competition.
4. Focused Use of IPO Proceeds
- A significant portion (₹2,700 crore) of the IPO proceeds is earmarked for debt reduction, aiming to strengthen the company’s balance sheet and reduce interest liabilities.
Risks of Leela Hotels IPO
1. High Debt Levels
- As of May 2024, the company had total borrowings of ₹4,052.5 crore. While the IPO aims to reduce this debt, the current leverage poses financial risks.
2. Continued Financial Losses
- Despite narrowing losses, the company reported a net loss of ₹2.13 crore in FY24. Sustained profitability remains a challenge.
3. Concentration Risk
- A significant portion of revenue is derived from five owned hotels, making the company vulnerable to regional market fluctuations and operational disruptions in these key properties.
4. Industry Cyclicality
- The hospitality sector is subject to seasonal and cyclical variations, which can lead to fluctuations in occupancy rates and revenues.
5. Competitive Market Landscape
- The company faces stiff competition from established players like Indian Hotels (Taj), EIH (Oberoi), and Chalet Hotels, which could impact market share and pricing power.
Summary Table
| Strengths | Risks |
|---|---|
| Iconic luxury brand with global recognition | High debt levels (₹4,052.5 crore as of May 2024) |
| Backed by Brookfield Asset Management | Continued financial losses (₹2.13 crore in FY24) |
| Prime properties in high-barrier markets | Revenue concentration in five key hotels |
| Strong operational metrics (RevPAR, EBITDA margins) | Exposure to industry cyclicality |
| Focused use of IPO proceeds for debt reduction | Competitive market landscape |
Investors should weigh these strengths and risks in the context of their investment objectives and risk tolerance. While the company’s strong brand and strategic initiatives are promising, the financial challenges and market dynamics warrant careful consideration.
Schloss Bangalore Limited Contact Details
Registered Office
Address:
The Leela Palace, Diplomatic Enclave,
Africa Avenue, Netaji Nagar,
New Delhi – 110023, India
Phone: +91 22 6901 5454
Email: cs@theleela.com
Corporate Office
Address:
Tower 4, Third Floor, Equinox Business Park,
Kurla West, Mumbai – 400070, Maharashtra, India
Phone: +91 22 6901 5454
Email: cs@theleela.com
Investor Relations Contact
Contact Person: Ms. Jyoti Maheshwari
Designation: Company Secretary and Compliance Officer
Phone: +91 22 6901 5454
Email: cs@theleela.com
Registrar & Share Transfer Agent
Company: KFin Technologies Limited
Address: Selenium Tower B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500032, Telangana, India
Phone: +91 40 6716 2222 | 1800 309 4001
Email: leelahotels.ipo@kfintech.com
Website: www.kfintech.com
Official Website
For more information, visit: www.theleela.com
Leela Hotels IPO Registrar
The registrar for the Schloss Bangalore Limited IPO (Leela Hotels IPO) is KFin Technologies Limited. Below are the detailed contact details:
Registrar & Share Transfer Agent
KFin Technologies Limited
Selenium Tower-B, Plot 31 & 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad – 500032,
Telangana, India
Phone: +91 40 6716 2222 / 1800 309 4001
Email: leelahotels.ipo@kfintech.com
Website: www.kfintech.com
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