Schloss Bangalore, which owns The Leela Palaces, Hotels and Resorts, has filed red herring prospectus with the Registrar of Companies on May 20 as it plans to hit Dalal Street with its Rs 3,500-crore initial public offering on May 26. The issue had received approval from SEBI in December last year.
The anchor book of the IPO will be launched for a day on May 23. The issue will close public subscription on May 28.
The company is expected to finalise the IPO share allotment by May 29, while the trading in Schloss Bangalore shares will commence on the bourses effective June 2.
The IPO comprises of fresh issuance of equity shares worth Rs 2,500 crore, and an offer-for-sale of Rs 1,000 crore worth shares by promoter Project Ballet Bangalore Holdings (DIFC), a subsidiary of Brookfield Asset Management.
The price band for the offer will be announced on May 21.
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Up to 75 percent of the public issue size is reserved for qualified institutional buyers, of which up to 60 percent portion (that comes to Rs 1,575 crore) may be allocated to anchor investors . Further, 15 percent of the offer size is set aside for non-institutional investors, and the remainder 10 percent for retail investors.
Schloss Bangalore intends to utilise Rs 2,300 crore out of net fresh issue proceeds for repayment of its debt, and the remainder for general corporate purposes.
"As on March 2025, our company and our subsidiaries had outstanding borrowings of Rs 3,908.7 crore," said the owner of The Leela brand in its prospectus.
Schloss Bangalore that competes with listed entities like The Indian Hotels Company, EIH, Chalet Hotels, Juniper Hotels, and ITC Hotels claimed to be one of the largest luxury hospitality companies by number of keys in India. It operates 3,553 keys across 13 hotels of portfolio comprising The Leela Palaces, The Leela Hotels and The Leela Resorts.
The book running lead managers handling the big-ticket size public issue are JM Financial, BofA Securities India, Morgan Stanley India Company, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Capital Services, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets. KFin Technologies is the registrar to the issue.
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