Schloss Bangalore Limited IPO to Open on May 26: Price Band Fixed at ₹413–₹435

Mumbai, May 23, 2025: Schloss Bangalore Limited, the distinguished luxury hospitality company operating under the renowned The Leela brand, is poised to launch its Initial Public Offering (IPO) on Monday, May 26, 2025. The offering, structured as a 100% book-built issue, comprises both a fresh issue and an offer for sale (OFS). The price band for the issue has been set between ₹413 and ₹435 per equity share.

The public subscription window will remain open until Wednesday, May 28, 2025, with the equity shares proposed for listing on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The NSE will act as the designated exchange for the listing.

IPO Snapshot

Company Profile

Established in 2019, Schloss Bangalore Limited is the parent company operating 13 luxury properties under The Leela brand across India. This includes five wholly owned hotels and eight properties operated through management or franchise agreements. The group is strategically positioned within India’s upscale hospitality sector, which benefits from higher average room rates and is expected to experience robust growth in alignment with India’s expanding economy.

As of FY25, the company operates a total of 3,553 keys, with flagship properties located in major cities such as Delhi, Mumbai, Bengaluru, Jaipur, Chennai, and Udaipur.

Financial Snapshot (FY25 – Restated Consolidated)

• Revenue: ₹1,406.56 crore
• Profit After Tax (PAT): ₹47.66 crore
• Earnings Per Share (EPS): ₹1.97 (Basic and Diluted)
• Net Worth: ₹3,604.99 crore
• Total Assets: ₹7,778.38 crore
• Total Borrowings: ₹3,908.75 crore

At the upper limit of the price band (₹435), the IPO implies a valuation multiple of approximately 221x based on FY25 earnings and the post-issue equity base.

Offer Structure and Shareholding

The offering consists of:

• A Fresh Issue of ₹2,500 crore
• An Offer for Sale (OFS) of ₹1,000 crore by Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, one of the company’s promoters.

Currently, the promoters collectively hold 100% of the company’s equity. Following the IPO, their stake will be diluted, with allocation as per SEBI regulations: 75% to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to Retail Individual Investors (RIIs).

Key Considerations for Investors

• Strong Brand Positioning: The Leela is well-established in India’s luxury hospitality segment.
• Revenue Concentration: A significant share of revenue originates from just five owned properties.
• Contingent Liabilities: The company has disclosed liabilities amounting to ₹494 crore.
• Leverage: Borrowings stand at over ₹3,900 crore, indicating a highly leveraged position.
• GMP (Grey Market Premium): No confirmed data is available at this time.

Final Thoughts

With the listing anticipated in early June 2025, and a notable line-up of institutional investors already showing interest, all eyes are on how Schloss Bangalore Limited’s IPO will perform in the current optimistic market environment.

For further details, prospective investors are encouraged to consult the Red Herring Prospectus or reach out to the Book Running Lead Managers (BRLMs) or Registrar.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.

Source: https://www.bseindia.com/markets/publicIssues/DisplayIPO.aspxid=3938&type=IPO&idtype=1&status=F&IPONo=7083&startdt=26/May/2025