Leela Hotels Operator Schloss Bangalore Files For Rs 5,000-Crore IPO

Schloss Bangalore Private Limited was founded on March 20, 2019, and became a private corporation. It is classified as a non-government company and is registered with the Registrar of Companies, ROC Delhi. It has 201,695,660 rupees in paid-up capital and 675,000,000 rupees in authorized share capital. It is found in cafes, restaurants, and bars [Vending machine sales fall under Sub-class 52599]. Anuraag Bhatnagar, Madhav Sehgal, Ravi Shankar, and Anand B. Upadhyay are the directors of Schloss Bangalore Private Limited. As of May 31, 2024, Schloss Bangalore’s portfolio consisted of 3,382 keys spread over 12 hotels operating under the Leela brand. These properties are dispersed throughout ten Indian locations. The business has grown significantly financially; from Rs 87.72 crore in FY22 to Rs 600.03 crore in FY24, and EBITDA increased.

Schloss Bangalore Private Limited applies for IPO:

The owner of Leela Palaces Hotels & Resorts, Schloss Bangalore Ltd., has filed preliminary paperwork for an IPO valued at Rs 5,000 crore with Sebi. This might end up being the biggest IPO in the hospitality industry in India. Project Ballet Bangalore Holdings DIFC Pvt Ltd is offering to sell shares for Rs 2,000 crore as part of the IPO, in addition to a new equity issue of Rs 3,000 crore.

Repayment of loans and general corporate purposes will be the two uses of the proceeds from the new issue. Schloss Bangalore borrowed a total of Rs 4,052.50 crore as of March 2024. The company is thinking about raising Rs 600 crore through a pre-IPO placement, which, if it goes ahead, would lower the size of the new issue.

Schloss Bangalore Private Limited: The performance:

Schloss’s total yearly losses decreased to Rs 2.13 crore in March 2024 from Rs 61.68 crore. In March 2024, revenue per available room (RevPAR), a crucial metric for hotel operators and owners, increased by almost 23% year over year to Rs 9,592. It is anticipated that the Indian hospitality market will reach $31 billion by 2029, up from $24.6 billion in 2024.

Eleven investment banks oversee the initial public offering. Kotak Mahindra Capital, JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Axis Capital, Citi, ICICI Securities, IIFL Capital, Motilal Oswal, and SBI Caps are some of them.

Conclusion: Schloss Bangalore Private Limited is using an initial public offering (IPO) to raise capital for loan repayment and other corporate needs.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.