Schloss Bangalore Seeks ₹5,000 Crore via IPO to Boost Leela Brand Expansion

23 Sep 2024 , 03:23 PM

Schloss Bangalore, operator of luxury hotels and resorts under The Leela brand, has filed with SEBI to raise ₹5,000 Crore through an initial public offering (IPO) as of September 20.

The IPO aims to generate ₹3,000 Crore via a fresh issue and ₹2,000 Crore through an offer-for-sale (OFS), with Project Ballet Bangalore Holdings (DIFC) as the selling shareholder.

The company may consider a pre-IPO placement of ₹600 Crore before submitting the Red Herring Prospectus to the Registrar of Companies.

Schloss Bangalore plans to allocate ₹2,700 Crore from the fresh issue proceeds to repay existing debt, which totaled ₹4,052.5 Crore as of May 2024.

Remaining funds will be used for general corporate purposes, while OFS proceeds will benefit the promoter. The Leela brand, founded in 1986 by Captain C.P. Krishnan Nair, currently operates 12 hotels with 3,382 keys.

Financial performance shows improvement: net loss reduced to ₹2.1 Crore in FY24 from ₹61.7 Crore in FY23 and ₹319.8 Crore in FY22. The company reported revenue of ₹1,171.5 Crore in FY24, a 36.2% increase from the previous year.

Eleven merchant bankers, including JM Financial and BofA Securities India, will manage the public issue, with KFin Technologies as the registrar.