Leela Palaces to file for Rs 5,000-cr IPO soon; biggest ever in hotel segment

Brookfield-backed The Leela Palaces, Hotels & Resorts to file for Rs 5,000-cr IPO soon; biggest ever in hotel segment

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26 Aug, 2025 12:21

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Brookfield Asset Management-owned Leela Palaces, Hotels & Resorts is gearing up to file draft papers shortly for India's biggest ever IPO in the hotels sector as the luxury hospitality chain looks to raise Rs 5,000 crore, three people said.

"This is a mega issue for the hospitality space and the filing with Sebi is likely soon. The primary component is Rs 3,000 crore which will be used for growth capital while the secondary component is Rs 2,000 crore, with promoter Brookfield looking to dilute stake," one of the people said  on the condition of anonymity.

As many as 11 investment banks, including Kotak Mahindra Capital, JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Axis Capital, Citi, ICICI Securities, IIFL Capital , Motilal Oswal and SBI Caps, will manage the share sale.

An immediate comment could not be elicited from Brookfield Asset Management and the investment banks. This story will be updated as soon as we hear from them.

In March 2019, Toronto-based Brookfield acquired four of Leela’s assets in Delhi, Bangalore, Udaipur and Chennai from JM Financial Asset Reconstruction Co. for Rs 3,950 crore and has revived the business since then. The proposed IPO by the Canadian firm will not include Leela Mumbai, which is already listed as Hotel LeelaVenture Ltd (HLV).

In a May interview to CNBC TV-18, Ankur Gupta Head of Asia Pacific and Middle East for Brookfield's Real Estate Group said the Canadian firm's foray into Leela Palaces, Hotels and Resorts, in 2019 was more than just a gamble on real estate; it was a strategic investment in a luxury brand with potential for significant operational turnaround.

Leela plans for almost 20 properties across India, a journey that started with eight hotels, which now stands at 15, Gupta added in the May interaction.

Recently, Ventive Hospitality, a joint venture between Pune-based real estate developer Panchshil Realty and global investment firm Blackstone, which has a portfolio of luxury hospitality assets , filed its draft IPO documents to raise Rs 2,000 crore.