India’s luxury hospitality sector is gearing up for a major development as Schloss Bangalore Private Limited, the Brookfield-backed operator of The Leela Palaces, Hotels and Resorts, launches its highly anticipated initial public offering (IPO). With a strong presence in the upscale hospitality segment and a premium brand image, the Leela Hotels IPO is creating a buzz among investors and industry watchers alike.
Credits: Mint
Here’s everything you need to know about the IPO—and why it could be one of the hottest listings of the year.
IPO Timeline: Save the Dates
The Leela Hotels IPO will open for subscription on May 26, 2025, and close on May 28, 2025. Investors looking to secure a stake in one of India’s most prestigious luxury hotel chains will have a narrow three-day window to apply.
The allotment of shares is expected to be finalized on May 29, while the listing on NSE and BSE is tentatively scheduled for June 2, 2025.
Price Band and Lot Size
The IPO comes with a price band of ₹413 to ₹435 per share. Retail investors will need to invest in minimum lots of 34 shares, translating to a base investment of ₹14,042 at the upper price band.
Early signals from the grey market have been promising. According to market sources, the Leela Hotels IPO GMP (Grey Market Premium) is currently around ₹18 per share, hinting at positive listing expectations.
Business Overview: The Leela Legacy
Schloss Bangalore, incorporated in 2019, manages 12 luxurious properties under The Leela brand, with a total room inventory of 3,382 rooms as of May 2024. Despite being relatively new as a corporate entity, it holds the reins of a brand synonymous with grandeur, palatial architecture, and premium service.
With properties in iconic locations like Delhi, Mumbai, Udaipur, Bengaluru, Chennai, and Gandhinagar, The Leela brand appeals to both global and Indian luxury travelers.
Backed by Brookfield Asset Management, the company has focused on scaling operations while maintaining high service standards—a rare blend in the Indian hospitality sector.
IPO Structure: Fresh Issue + OFS
The company has trimmed its IPO size by 30%, from the initially planned ₹5,000 crore to ₹3,500 crore. The revised structure includes:
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Fresh Issue of ₹2,500 crore (approx. 5.75 crore shares)
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Offer for Sale (OFS) of ₹1,000 crore (approx. 2.30 crore shares)
The fresh proceeds will likely be deployed for growth initiatives, debt repayment, and general corporate purposes—fueling further expansion of the luxury brand.
Who’s Getting What: Investor Quota Breakdown
The public issue follows SEBI norms, with the following allocation:
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75% for Qualified Institutional Buyers (QIBs)
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Of this, ₹1,575 crore (60%) is reserved for anchor investors
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15% for Non-Institutional Investors (NIIs)
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10% for Retail Investors
This allocation ensures balanced participation from all segments of the investing public, although retail investors should act fast due to the limited quota.
Promoters and Management
The company is promoted by several DIFC-based (Dubai International Financial Centre) entities under the Brookfield umbrella. These include:
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Project Ballet Bangalore Holdings
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BSREP III Joy (Two) Holdings
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BSREP III Tadoba Holdings
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Project Ballet Chennai, Udaipur, Gandhinagar & HMA Holdings
Brookfield’s backing adds credibility and deep-pocketed stability to the business, offering comfort to investors concerned about long-term value creation.
Lead Managers and Registrar
The IPO is being managed by an impressive syndicate of book-running lead managers (BRLMs) including:
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JM Financial
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BofA Securities
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Morgan Stanley
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Kotak Mahindra Capital
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Axis Capital
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J.P. Morgan
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Citigroup
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IIFL Securities
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Motilal Oswal
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SBI Capital Markets
KFin Technologies is the registrar for the IPO.
Credits: Mint
Final Thoughts: A Blue-Chip Play in Hospitality?
As travel and tourism bounce back post-pandemic, and demand for luxury experiences surges, Leela Hotels is strategically positioned to tap into the premium travel segment. With a strong brand, global investor backing, and a well-thought-out expansion plan, the IPO offers a compelling opportunity for investors looking for exposure to India’s luxury consumption story.
However, as with all IPOs, investors should analyze financials, business risks, and market conditions before making their final decision.
Verdict: A premium hospitality brand entering the public markets with promising momentum and positive market signals—this IPO might just be worth watching.
