Schloss Bangalore Ltd Secures Rs 1,575 Crore from Anchor Investors Before IPO Launch

Schloss Bangalore Ltd, the operator of Leela Palaces Hotels and Resorts, has secured Rs 1,575 crore from anchor investors ahead of its public share-sale. The anchor book saw participation from domestic institutional investors like HDFC Mutual Fund, ICICI Prudential MF, and others. Global interest was also strong with sovereign and FPIs such as Think Invest and Fidelity showing demand.

The company allocated 36,206,896 equity shares to 47 funds at Rs 435 each, raising Rs 1,575 crore. The IPO is priced between Rs 413-435 per share and will be open for public subscription from May 26 to 28. The Rs 3,500-crore IPO includes a fresh issue of Rs 2,500 crore in equity shares and an offer for sale of Rs 1,000 crore by Project Ballet Bangalore Holdings DIFC Pvt Ltd.

IPO Management and Financial Strategy

The IPO is managed by a group of 11 merchant bankers including JM Financial and BofA Securities India. The proceeds from the fresh issue will be used to repay loans taken by the company and its subsidiaries and for general corporate purposes. As of March 2025, Schloss Bangalore had borrowings exceeding Rs 3,900 crore.

Schloss Bangalore's financial performance has shown significant growth. Operating profit or EBITDA rose from Rs 87.72 crore in FY22 to Rs 600.03 crore in FY24. This growth reflects the company's strong financial health and strategic management.

Portfolio and Market Presence

The company is renowned for its luxury hotels under The Leela brand. As of May 31, 2024, it had a portfolio of 3,382 keys across 12 operational hotels in India. These include The Leela Palaces, Hotels, and Resorts located in ten destinations nationwide.

Brookfield Asset Management backs Schloss Bangalore. The company plans to use the IPO proceeds to strengthen its financial position by reducing debt and supporting corporate activities.

The anchor investors' participation highlights confidence in Schloss Bangalore's market position and future prospects. This interest from both domestic and international investors underscores the company's appeal in the hospitality sector.

The company's strategic use of IPO funds aims to enhance its financial stability while expanding its luxury hotel offerings across India.

With inputs from PTI