The stock market is booming, and many businesses are taking advantage of this by launching initial public offerings (IPO). The hotel chain Schloss Bangalore is getting ready to launch its own offering after a few renewable and non-banking sector firms successfully completed their initial public offerings. The Securities and Exchange Board of India (SEBI) has received a draft of the red herring prospectus (DRHP) from Schloss Bangalore, the company that runs Leela Palaces, Hotels, and Resorts.
The goal of Schloss Bangalore is to raise about Rs 5,000 crore. In the Indian stock market’s history, this would be the biggest initial public offering (IPO) in the hotel industry. CP Krishnan Nair established Leela Palaces in 1986; Brookfield Asset Management is the current owner of the establishment. While stakeholder Project Ballet Bangalore Holdings (DIFC), a Brookfield Asset Management subsidiary, is selling shares for Rs 2,000 crore, Schloss is issuing new shares for Rs 3,000 crore.
For Rs 3,950 crore in March 2019, Brookfield purchased four Leela Palace locations from JM Financial Asset Reconstruction Company in Delhi, Bengaluru, Udaipur, and Chennai. By 2028, the business hopes to have eight more hotels open in addition to the twelve it now runs in ten Indian locations.
Schloss’s total yearly losses decreased to Rs 2.13 crore in March 2024 from Rs 61.68 crore. A crucial indicator for hotel owners and operators, revenue per available room (RevPAR), increased by about 23% annually to Rs 9,592 in March 2024. It is anticipated that the Indian hospitality sector will reach $31 billion by 2029, up from $24.6 billion in 2024. Eleven investment banks oversee the IPO. These companies are Motilal Oswal, SBI Caps, Axis Capital, Citi, ICICI Securities, JM Financial, BofA Securities, Morgan Stanley, JP Morgan, and Kotak Mahindra Capital.
