India's Largest Hospitality Sector IPO to Hit Markets with Rs 3,500 Cr Price Band

Strategic Insights -

Schloss Bangalore Ltd, the parent company of luxury hotel chain Leela Palaces Hotels & Resorts, will launch its highly-anticipated initial public offering (IPO) on Monday, May 26, 2025, with a price band of Rs 413-435 per share. The company's IPO comprises a fresh issue of equity shares worth Rs 2,500 cr and an offer for sale of stocks valued Rs 1,000 cr by promoter Project Ballet Bangalore Holdings. The Leela's portfolio boasts 3,382 keys across 12 operational hotels as of May 31, 2024, with a valuation of over Rs 14,500 cr at the upper-end of the price band.

Key Takeaways:

  • The IPO will offer a combination of fresh issue of equity shares worth Rs 2,500 cr and an offer for sale of stocks valued Rs 1,000 cr by promoter Project Ballet Bangalore Holdings.
  • The Leela Palaces Hotels & Resorts has a portfolio of 3,382 keys across 12 operational hotels as of May 31, 2024.
  • The company's operating profit increased from Rs 87.72 cr in FY22 to Rs 600.03 crore in FY24.
  • The company is planning to invest Rs 1,130 cr in new projects as part of expanding its operations further.
  • The IPO reservation is divided with 75% for qualified institutional buyers, 15% for non-institutional buyers, and 10% for retail investors.
  • Bids can be made for a minimum of 34 equity shares and in multiples of 34 thereafter.
  • The luxury hotel segment in India is underdeveloped, making up just 17% of the branded hotel market.
  • India's hospitality sector is expected to experience strong growth with the country's GDP projected to nearly double to $7.1 trillion by 2030 from $3.6 trillion in 2023.

Statistics:

  • The IPO price band is Rs 413-435 per share.
  • The company's IPO comprises a fresh issue of equity shares worth Rs 2,500 cr and an offer for sale of stocks valued Rs 1,000 cr.
  • The Leela Palaces Hotels & Resorts has a portfolio of 3,382 keys across 12 operational hotels as of May 31, 2024.
  • The company's operating profit increased from Rs 87.72 cr in FY22 to Rs 600.03 crore in FY24.
  • The company is planning to invest Rs 1,130 cr in new projects as part of expanding its operations further.
  • 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional buyers, and 10% for retail investors.
  • Bids can be made for a minimum of 34 equity shares and in multiples of 34 thereafter.
  • India's GDP is expected to nearly double to $7.1 trillion by 2030 from $3.6 trillion in 2023.
  • The luxury hotel segment in India makes up just 17% of the branded hotel market.

Sources:

  • FPJ News Service Mumbai
  • Copyright 2025 Indian National Press (Bombay) Pvt. Ltd., distributed by Contify.com