Leela Hotels IPO Date, Review, Price, Allotment Details
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Luxury hospitality brand Leela Hotels, operated under Schloss Bangalore Limited, is set to open its much-anticipated Initial Public Offering (IPO) on May 26, 2025. The public issue, aimed at raising ₹5,000 crore, will close on May 28, with listing scheduled for June 2, 2025 on both the BSE and NSE.
The IPO comprises a fresh issue of ₹3,000 crore and an offer for sale (OFS) worth ₹2,000 crore, involving equity shares with a face value of ₹10 each. The company has yet to announce the final price band and lot size.
IPO Quota Distribution
In a move targeting institutional participation, 75% of the issue is reserved for Qualified Institutional Buyers (QIBs), while 15% is allocated to Non-Institutional Investors (NIIs) and only 10% to retail investors.
The allotment of shares will be finalized on May 29, with refunds and credit to demat accounts scheduled for May 30.
About Leela Hotels (Schloss Bangalore Limited)
Incorporated in 2019, Schloss Bangalore Limited owns and operates the iconic Leela Palaces, Hotels, and Resorts across India. Backed by Brookfield Asset Management, one of the world’s leading investment firms, the group has rapidly grown into one of the largest luxury hotel operators in India by room count.
As of May 31, 2024, Leela Hotels operated 12 properties with a total of 3,382 rooms across the country. The company is also expanding into premium residential club offerings and Leela-branded residences, with plans to develop housing near its hotels.
Promoters of the IPO
The promoters include various Brookfield-backed entities, such as:
- Project Ballet Bangalore Holdings (DIFC) Pvt Ltd
- BSREP III Joy (Two) Holdings (DIFC) Ltd
- BSREP III Tadoba Holdings (DIFC) Pvt Ltd
- Project Ballet Chennai, Gandhinagar, Udaipur, and HMA Holdings (DIFC)
Financial Performance
Leela Hotels has shown strong revenue growth but continues to report losses, albeit significantly narrowed.
| Financial Year | Revenue (₹ Cr) | Expenses (₹ Cr) | Profit/Loss (₹ Cr) |
|---|---|---|---|
| 2022 | 415.95 | 783.72 | -319.83 |
| 2023 | 903.27 | 963.83 | -61.68 |
| 2024 | 1,226.50 | 1,207.07 | -2.13 |
| May 2024 | 169.74 | 207.23 | -36.39 |
While profitability remains a challenge, losses have significantly reduced, suggesting operational improvement.
Key Financial Ratios (FY2024)
- EBITDA Margin: 48.92%
- PAT Margin: -0.17%
- Debt-to-Equity Ratio: -1.55
- EPS (Basic): -₹0.12
- Net Asset Value (NAV): -₹160.57
Use of IPO Proceeds
According to the company, the funds will be used for:
- Repayment or redemption of borrowings by the company and its subsidiaries, including Schloss Chanakya, Schloss Chennai, Schloss Udaipur, and TPRPL
- General corporate purposes
Peer Comparison
| Company | EPS | PE Ratio | RoNW (%) | NAV | Revenue (₹ Cr) |
|---|---|---|---|---|---|
| The Indian Hotels Co. Ltd. | 8.86 | 77.27 | 13.13 | 71.16 | 6,768.75 |
| EIH Limited | 10.22 | 37.25 | 16.58 | 65.34 | 2,511.27 |
| Chalet Hotels Ltd. | 13.54 | 65.16 | 15.03 | 90.08 | 1,417.25 |
| Juniper Hotels Ltd. | 1.46 | 268.18 | 0.90 | 119.34 | 817.66 |
IPO Lead Managers and Registrar
Lead Managers:
- JM Financial
- BofA Securities India
- Morgan Stanley India
- J.P. Morgan India
- Kotak Mahindra Capital
- Axis Capital
- Citigroup Global Markets
- IIFL Securities
- Motilal Oswal
- SBI Capital Markets
Registrar:
KFin Technologies Ltd.
Website: kfintech.com
Company Contact
Schloss Bangalore Limited
The Leela Palace, Diplomatic Enclave
Africa Avenue, Netaji Nagar, South Delhi, 110023
Email: cs@theleela.com
Website: www.theleela.com
Conclusion
Backed by strong revenue growth and supported by Brookfield, Leela Hotels’ IPO presents a promising opportunity in India’s luxury hospitality sector. However, continued losses and negative net worth may raise caution among investors. Analysts suggest that the offer could be more suited for long-term investors banking on the brand’s premium positioning and future profitability.
