Schloss Bangalore Ltd., the operator of the renowned Indian luxury hotel chain ‘The Leela’, is set to open its initial public offering on May 26.

The price band for the IPO has been set in the range of Rs 413 to Rs 435 per share. The market value at the upper end of the price band is Rs 14,527 crore, as per NDTV Profit calculations. Bids can be made for a minimum of 34 shares, and then in multiples thereof.

The IPO will consist of fresh equity shares worth Rs 2,500 crore and an offer for sale component totaling Rs 1,000 crore.

Project Ballet Bangalore Holdings (DIFC) Pvt. will act as the promoter, participating in the OFS sale.

The book-running lead managers for the issue include JM Financial Ltd., BofA Securities India Ltd., Morgan Stanley India Co., JPMorgan India Pvt., Kotak Mahindra Capital Co., Axis Capital Ltd., Citigroup Global Markets India Pvt., IIFL Securities Ltd., ICICI Securities Ltd., Motilal Oswal Investment Advisors Ltd., and SBI Capital Markets Ltd. KFin Technologies Ltd. will serve as the registrar for the IPO.

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.

Leela Hotels IPO Details

  • Issue opens: May 26.

  • Issue closes: May 28.

  • Issue price: Rs 413–435.

  • Offer for sale: Rs 2,500 crore.

  • Fresh issue: Rs 1,000 crore.

  • Total issue size: Rs 3,500 crore.

  • Lot size: Minimum 34 shares, and then in multiples thereof.

Business

Schloss Bangalore is an Indian luxury hospitality company that owns, operates, manages, and develops premium hotels and resorts under the ‘The Leela’ brand.

As of March 31, 2025, the company holds a portfolio of 13 operational hotels encompassing 3,553 keys, making it the largest pure-play luxury hospitality operator in India by room count. This portfolio includes five owned hotels, seven managed properties, and one franchised hotel.

Looking ahead, Schloss Bangalore plans to expand its luxury hospitality footprint by adding seven new properties by 2028, both within India and internationally, contributing over 678 new keys to its portfolio.

Financial Performance

The company reported a 20.1% rise in revenue at Rs 1,406.55 crore in fiscal 2025 from Rs 1,171.45 crore in the previous fiscal. Net profit stood at Rs 47.65 crore, as compared to a loss of Rs 2.12 crore in fiscal 2024.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose to Rs 700.26 crore in the same period. The Ebitda margin expanded to 49.79% from 46.52%.

As of March 31, 2025, the company’s debt pile stood at Rs 3,908.7 crore.

Leela Hotels IPO: Key Risks

A significant portion of Schloss Bangalore’s total income is concentrated in five owned hotels — The Leela Palaces in Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur — which contributed 93.46% of total income in fiscal 2025, 93.77% in fiscal 2024, and 91.13% in fiscal 2023. Any adverse developments affecting these properties or their respective regions could materially impact the company’s overall business performance, financial condition, and results of operations.

The company is also exposed to risks related to the renovation and refurbishment of existing hotels in its portfolio.

Additionally, Schloss Bangalore faces construction risks associated with its upcoming properties — The Leela Ayodhya, The Leela Palace Agra, The Leela Ranthambore, The Leela Palace Srinagar, and The Leela Bandhavgarh. Delays or setbacks in completing these projects could hinder future expansion plans and adversely impact financial results.

Schloss Bangalore IPO GMP

The grey market premium of the IPO was Rs 13 as of 11:36 p.m. on May 25, according to InvestorGain. This implies shares of the company will likely list at Rs 448 apiece, indicating a 2.99% premium to the upper end of the price band.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.

Watch The IPO Adda Here

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.

. Read more on IPOs by NDTV Profit.The price band for the Leela Hotels’ operator’s IPO has been set in the range of Rs 413 to Rs 435 per share.  Read MoreIPOs, Markets, Business, Notifications 

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