Leela Palace IPO: Another company is ready to try its luck in the IPO market. The name of this company is Schloss Bangalore. This company operates palaces, hotels and resorts under The Leela brand. Now this company has filed preliminary papers with SEBI to raise Rs 5000 crore through IPO i.e. initial public offering.
Fresh issue of Rs 3000 crore
According to the draft red herring prospectus, the company aims to raise Rs 3,000 crore through a fresh issue and Rs 2,000 crore through the offer-for-sale route. Promoter Project Ballet Bangalore Holdings (DIFC) is the selling shareholder in the offer-for-sale. The luxury hospitality chain may consider a pre-IPO placement of Rs 600 crore before launching a public issue.
what will happen to the money
After the listing of Schloss Bangalore on the stock market, the company will compete with competitors like Indian Hotels, EIH, Chalet Hotels and Juniper Hotels. The company will allocate Rs 2,700 crore from the IPO proceeds to repay debt for both itself and its subsidiaries. The consolidated debt on its books as of May 2024 was Rs 4,052.5 crore. The remaining IPO funds will be used for general corporate purposes, while the proceeds of the offer for sale will go to the company’s promoter.
About the Company
Schloss operates luxury hotels and resorts under the Leela brand. The company has 3,382 keys in 12 operational hotels. The Leela brand was founded in 1986 by the late Captain C.P. Krishnan Nair. The portfolio includes five owned hotels, six hotels managed through hotel management agreements and one hotel owned and operated by a third party under a franchise arrangement.
The company’s financial performance has improved over the years. It reported a loss of Rs 2.1 crore for FY24, down from losses of Rs 61.7 crore in FY23 and Rs 319.8 crore in FY22. However, the loss in the first two months of FY25 was Rs 36.4 crore.
11. Merchant Banker
A total of 11 merchant bankers will be involved in the IPO of this company – 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. Apart from this, KFin Technologies is the registrar of this issue.
