Schloss Bangalore IPO: Leela Palaces Owner Reduces Issue Size, Public Bidding Starts May 26

Schloss Bangalore, the owner of The Leela Palaces, Hotels and Resorts, has reduced the size of its initial public offering (IPO) to Rs 3,500 crore from the earlier Rs 5,000 crore, according to the Red Herring Prospectus (RHP) submitted with the Registrar of Companies (RoC) today.

According to Moneycontrol, the Brookfield Asset Management-backed company now plans to sell a fresh issue of equity shares worth Rs 2,500 crore and an offer-for-sale (OFS) of Rs 1,000 crore by its promoter, Project Ballet Bangalore Holdings (DIFC).

In the draft red herring prospectus (DRHP) submitted last September, the company had proposed a total issue size of Rs 5,000 crore—comprising a fresh issue of Rs 3,000 crore and an OFS of Rs 2,000 crore.

The price band for the upcoming offering will be disclosed on May 21. The report noted that the anchor investor portion will open for subscription on May 23, while the IPO will be open for public bidding from May 26 to May 28. The allotment of shares is expected to be finalised by May 29, with trading on the stock exchanges scheduled to begin on June 2.

IPO Fund to Pay Off Debt

Schloss Bangalore plans to allocate Rs 2,300 crore from the net proceeds of the fresh issue towards debt repayment, with the remaining funds earmarked for general corporate purposes.

In its prospectus, the owner of The Leela brand disclosed that, as of March 2025, the company and its subsidiaries had total borrowings of Rs 3,908.7 crore.

Schloss Bangalore describes itself as one of India’s largest luxury hospitality firms by room count. Its portfolio includes 13 properties under The Leela Palaces, Hotels and Resorts banner, offering a total of 3,553 keys. It competes with listed peers such as The Indian Hotels Company, EIH, Chalet Hotels, Juniper Hotels, and ITC Hotels.

A consortium of top investment banks is managing the IPO. The book-running lead managers include JM Financial, BofA Securities India, Morgan Stanley India, JP Morgan India, Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India, IIFL Capital Services, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets. KFin Technologies will serve as the registrar to the issue.