In a major development for India’s hospitality sector, Schloss Bangalore Ltd, the owner of The Leela Hotels & Resorts has launched a ₹3,500 crore Initial Public Offering (IPO), signaling a strategic move to recalibrate its balance sheet and accelerate expansion across premium destinations in India.
Leela Hotels : IPO Structure and Objectives
The IPO comprises two components: a ₹2,500 crore fresh issue of equity shares and a ₹1,000 crore offer for sale (OFS) by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd. According to the red herring prospectus, the company plans to utilize proceeds from the fresh issue primarily to reduce its debt burden, which stood at over ₹3,900 crore as of March 2025.
Post-offer, the promoter holding will be diluted from 100% to approximately 75.9%, marking a significant transition for Schloss Bangalore Ltd from a closely held entity to a publicly traded one.
Financial Growth and Portfolio
The Leela has reported remarkable growth over recent years. Its EBITDA surged from ₹87.72 crore in FY22 to ₹600.03 crore in FY24, reflecting strong operational efficiency. The company currently operates 12 luxury properties with 3,382 keys across major Indian cities, including its flagship brands, The Leela Palaces, Hotels, and Resorts. These properties span 10 key destinations, positioning the brand prominently in India’s luxury hospitality space.
Investor Interest and Market Sentiment
Investor sentiment ahead of the listing has been moderate yet promising. The IPO received a 1% subscription within the first hour, with 3% uptake among retail investors. The company raised ₹1,575 crore from marquee anchor investors prior to the IPO opening, with participation from domestic giants like HDFC Mutual Fund, ICICI Prudential MF, Nippon India MF, and Aditya Birla Sun Life Insurance, as well as global institutional names including Goldman Sachs, Fidelity, Norges Bank, and Whiteoak.
In the grey market, The Leela’s shares are commanding a premium of ₹13-₹15 over the upper price band of ₹435, translating to a modest grey market premium (GMP) of about 3%.
Pricing, Timeline, and Listing
The IPO is being offered in the price band of ₹413–₹435. Subscription opened on May 26 and will close on May 28. The allotment results are expected by May 29, with shares slated to list on NSE and BSE by June 2.
Expert Opinions: Caution Amid Optimism
While institutional interest remains high, market experts have issued mixed recommendations. SBI Securities suggests subscribing, citing long-term value, while Bajaj Broking urges caution due to current net losses and steep valuation compared to peers.
Strategic Outlook
The IPO is viewed as a critical step in The Leela’s broader strategy to enhance financial discipline and drive growth. By reducing its leverage, the company aims to improve profitability and position itself for expansion in India’s booming luxury travel and hospitality sector.
With this public offering, Schloss Bangalore Ltd not only opens up new capital avenues but also signals a renewed commitment to transparency, governance, and long-term shareholder value.
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