Schloss Bangalore, a well-known company that owns the famous hotel brand The Leela, is planning to sell its shares to the public for the first time. This process is called an IPO, which means Initial Public Offering. The company has announced that each share will be priced between ₹413 and ₹435. People who want to buy shares can do so during the public offer, which will be open from May 26 to May 28. This step is very important for the company because it wants to raise money, reduce debt, and grow its business in the hotel industry.
The total value of Schloss Bangalore through this IPO is expected to be around ₹14,500 crore. This number shows how big and valuable the company is in the hotel market. The IPO will not only bring in money but also help the company improve its financial health. Schloss owns The Leela hotels, which are luxury hotels located in different cities in India. These hotels are known for their high quality, great service, and beautiful locations. Many rich travelers and business people choose to stay at Leela hotels. The IPO will allow investors to own a part of this successful brand.
The IPO will raise around ₹3,500 crore in total. Out of this, ₹2,500 crore will come from new shares issued by the company. This money will go directly to Schloss to be used for business purposes. The other ₹1,000 crore will come from selling old shares owned by current shareholders. One of the main sellers is Brookfield Asset Management, a Canadian investment company that currently owns a big part of Schloss. When these shares are sold, the money will go to Brookfield, not the company. This part of the offer is called an Offer for Sale, or OFS.
Originally, Schloss Bangalore planned to raise ₹5,000 crore through the IPO. But now they have reduced it to ₹3,500 crore. This change shows that the company wanted to make the offer more attractive to investors. Sometimes, lowering the IPO size can help increase demand for the shares, making it easier to sell all of them. It can also help keep the share price within a good range. Many experts think that this decision will help the company succeed with the IPO. It shows that the company is flexible and is thinking carefully about market conditions and investor interest.
The money raised from the new shares will be used to repay loans. Schloss has borrowed money in the past to build hotels and grow the business. But now they want to reduce their debt and become a debt-free company. Being debt-free means they will not have to pay interest every year, which will save money. This will also improve the company’s profits in the future. Investors like companies with low or no debt because they are seen as safer. That is why Schloss wants to use the IPO funds to clear its loans and become financially stronger.
The shares of Schloss Bangalore will be listed on two major Indian stock exchanges—BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). These are the places where people can buy and sell company shares. After the IPO ends, the shares are expected to be listed on June 2, 2025. Once listed, anyone can buy shares of Schloss in the stock market. This listing will make the company more visible and open to the public. It will also allow shareholders to trade their shares easily. Being on the stock exchange also brings more trust and respect for the company.
Before the IPO opens to the public, there will be a special round of bidding for anchor investors on May 23. Anchor investors are big investment companies and mutual funds that buy a large number of shares before the IPO opens. Their early interest helps create confidence in the IPO. If anchor investors buy shares, it shows that they trust the company. This often encourages more people to buy during the public offer. Schloss hopes to attract strong anchor investors who believe in the future of The Leela brand and its ability to make profits over time.
People who want to buy shares in the IPO can start bidding from May 26. The offer will be open for three days, ending on May 28. Investors can bid for a minimum of 34 shares. This is the smallest lot size set by the company. If someone wants to apply at the highest price of ₹435 per share, they will need at least ₹14,790 to buy one lot. If they want to buy more, they can apply for more lots in multiples of 34 shares. This system is used to keep the process simple and easy to manage.
Schloss Bangalore owns twelve luxury hotels under the brand name The Leela. These hotels have a total of 3,382 rooms across India. Some popular locations include Mumbai, Bengaluru, Delhi, and Goa. The Leela hotels are known for their luxury, high-end service, and grand design. Many celebrities, business leaders, and foreign travelers choose these hotels when they visit India. The company wants to expand further and use the IPO money to improve services, renovate properties, and maybe open new hotels. With the growing tourism and travel industry in India, Schloss sees big opportunities in the hotel market.
The financial performance of Schloss Bangalore has improved a lot in the last few years. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from ₹87.72 crore in the financial year 2022 to ₹600.03 crore in 2024. This is a big increase and shows how well the company has managed its business. More people are traveling now, especially after COVID-19, and the hotel industry is seeing growth. The rise in EBITDA means the company is earning more from its operations. This strong financial result is one reason why Schloss feels confident to go public through this IPO.
The Leela brand has become one of the top hotel brands in India. It has won many awards and is known for its luxury services. Every hotel under this brand tries to give the best experience to its guests. From fine dining and grand rooms to personalized services, The Leela has built a good name over the years. Schloss Bangalore, as the owner, has played a major role in maintaining this quality. Now, by going public, Schloss wants to raise more money and take the brand to new heights. Investors who believe in India’s tourism growth may find this IPO attractive.
Many people are watching this IPO because it could be one of the biggest in India’s hotel sector. Hospitality IPOs are not very common, so this one is special. It also comes at a time when the travel industry is growing fast again. Business meetings, weddings, and vacations are bringing more guests to hotels. This is good news for Schloss, as more guests mean more revenue. With the help of the IPO funds, the company can improve its hotels, train staff, and bring in new technology. All of this will help keep The Leela brand strong in a competitive market.
Schloss Bangalore is backed by Brookfield Asset Management, a global investment firm. Brookfield is selling a part of its stake in this IPO through the Offer for Sale. This shows that they want to recover some of their investment. However, they are not exiting completely, which means they still believe in the company. When a large investor like Brookfield stays invested, it gives confidence to new investors. It also shows that they expect the company to grow more in the future. This balance between selling and staying invested is a smart move by both Brookfield and Schloss.
People who want to invest in this IPO should study the company’s business carefully. They should read the red herring prospectus, which has all the details about the company’s finances, risks, and future plans. Investing in the stock market always comes with risks. The hotel industry can be affected by economic changes, travel bans, or health crises. But if Schloss keeps growing and managing its hotels well, it could give good returns in the long term. The IPO gives retail investors a chance to own a part of a luxury hotel chain and benefit from its future growth.
The Indian hospitality industry is expected to grow in the coming years. More people are traveling for work, leisure, and events. International tourists are also visiting India more often. Government efforts like promoting tourism and improving infrastructure are helping the industry grow. Schloss Bangalore, with its strong brand and premium hotels, is in a good position to take advantage of these trends. If the company continues to perform well and use the IPO funds wisely, it could become one of the top listed companies in the hospitality sector. This IPO could be a turning point for Schloss and its investors.
In conclusion, Schloss Bangalore’s IPO is an important step for both the company and the Indian hotel industry. With a price band of ₹413–₹435 and a reduced IPO size of ₹3,500 crore, Schloss is aiming to attract a wide range of investors. The company plans to become debt-free and grow its hotel business further. The Leela brand is already a leader in luxury hotels, and this public offer could help it reach new heights. Investors looking for long-term growth in a trusted brand may find this IPO worth exploring as India’s travel and hospitality sector continues to expand.