Schloss Bangalore, the parent company of hotel firm Leela Palaces, Hotels & Resorts, plans to issue shares for its initial public offering at significant discount.
The planned issue slashes approximately 30% from Schloss Bangalore's initial application of approximately 50 billion Indian rupees ($584.6 million) back on Sept. 20, 2024. The new offering values the Bengaluru-based firm’s IPO at approximately $409 million. Schloss Bangalore said the share issue — with a price band that would be between 413 rupees ($0.41) to 435 rupees ($0.59) per share — places an overall value on the company of approximately $1.7 billion, Reuters reports.
The new issue comprises a fresh issue of approximately 25 million Indian rupees and an offer for sale of approximately 10 million rupees. Reuters reports the offer for sale derives from Schloss Bangalore’s principal sponsor, New York City-based Brookfield Asset Management, offloading 8% of its stake in the Indian firm.
Schloss Bangalore’s red herring prospectus, a preliminary prospectus, states that Brookfield-affiliated shareholders currently hold more than 25% of the Indian firm.
According to the company's official IPO prospectus, the offering which will be launched between May 26 and 28 on the Bombay Stock Exchange.
Last September, Schloss Bangalore's initial IPO was forecast to be the most valuable among public Indian hospitality companies.
In its latest earnings report, Leela's portfolio comprises 13 hotels and 3,553 rooms, all in the luxury segment. Schloss Bangalore owns five of those hotels and manages seven. The final hotel is owned and operated by a third-party management firm in a franchise agreement. Leela has a further eight hotels and 833 keys in its development pipeline, all due to open by the end of 2028.
Leela's full-year 2025 results added that it had posted an 11% increase in revenue, an increase that has helped its debt fall.
Schloss Bangalore’s IPO is the latest among hotel companies in India in the past few years. Recent listings include Juniper Hotels, SAMHI Hotels, Apeejay Surrendra Park Hotels, Ventive Hospitality and ITC Hotels.
Last summer, the National Stock Index of India launched the Nifty India Tourism Index, a vehicle to provide more sophistication and benchmarking to the sector and a wider pool of potential investors.