Leela Hotels IPO opens on May 26: Schloss Bangalore mobilises Rs 1,575 crore via anchor book

Leela Hotels IPO

Brookfield-backed Schloss Bangalore, the operator of luxury hotels and resorts chain under The Leela brand, has raised Rs 1,575 crore via anchor book on May 23, a day before the IPO opening.

The Rs 3,500-crore initial public offering, which comprises of fresh issuance of 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), will open for public subscription on May 26. The offer will close on May 28.

The price band for the book-building issue has been fixed at Rs 413-435 per share.

The company in its filing to exchanges said it has finalised allocation of 3.62 crore equity shares to anchor investors at a price of Rs 435 per share.

Marquee global investors turned shareholders in the company included WF Asian Reconnaissance Fund, Government Pension Fund Global, CLSA Global, Eastspring Investments, Citigroup Global, Societe Generale, Integrated Core Strategies, Fidelity, and Goldman Sachs, Tocu Europe, Hudson Bay Master Fund, and Moran Stanley.

Domestic institutional investors including HDFC Mutual Fund, ICICI Prudential MF, Nippon Life India, WhiteOal Capital, 360 ONE Special Opportunities Fund, Invesco, Axis Max Life Insurance, Baroda BNP Paribas MF, Aditya Birla Sun Life Insurance, JM Financial MF, Mirae Asset, and SBI General Insurance Company also invested in Schloss Bangalore that operates 13 luxury hotels with 3,553 keys in India.

Click Here To Read All IPO News

"Out of total allocation of 3.62 crore equity shares to anchor investors, 1.42 crore equity shares were allocated to 9 domestic mutual funds which have applied through 20 schemes," the Mumbai-based company said in its filing.

Leela Hotels that competes with listed entities like Indian Hotels, EIH, Chalet Hotels, Juniper Hotels and ITC Hotels plans to utilise Rs 2,300 crore out of fresh issue proceeds for repaying debt, and the remainder for general corporate purposes.

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 are the merchant bankers handing Leela Hotels IPO.