Schloss Bangalore Ltd Plans Historic Rs 5,000 Crore IPO for Leela Palaces Hotels & Resorts

Schloss Bangalore Ltd is set to launch the largest IPO in India's hospitality sector, aiming to raise Rs 5,000 crore. The IPO will consist of a fresh issue of Rs 3,000 crore in equity shares and an offer for sale of Rs 2,000 crore. The funds raised will be used for loan repayment and general corporate purposes.

Schloss Bangalore Ltd, the operator of Leela Palaces Hotels & Resorts, has filed preliminary documents with capital markets regulator Sebi to launch a Rs 5,000 crore initial public offering (IPO). This IPO is poised to be the largest in India's hospitality sector.

The proposed IPO comprises a fresh issue of equity shares totaling Rs 3,000 crore and an offer for sale (OFS) of shares worth Rs 2,000 crore by Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, as outlined in the draft red herring prospectus (DRHP).

Proceeds from the fresh issue will be allocated for loan repayments and general corporate needs. Notably, the company and its subsidiaries had borrowings amounting to Rs 4,052.50 crore as of March 2024. Schloss Bangalore, known for its 'The Leela' brand of luxury hotels and resorts, operates 12 hotels with 3,382 keys across 10 destinations in India.

(With inputs from agencies.)