Schloss Bangalore Limited: A New Chapter in Luxury Hospitality
Schloss Bangalore Limited, backed by Brookfield Asset Management, is making waves in the luxury hospitality sector with its recent announcement of raising ₹1,575 crores from 47 prominent domestic and global anchor investors. This fundraising effort, executed at the upper end of the price band at ₹435 per equity share, has garnered significant attention, reflecting the growing confidence in India’s luxury hotel market.
Anchor Investment Highlights
The company has successfully allotted over 3.62 crore equity shares to these anchor investors, which include notable global funds such as Goldman Sachs, Fidelity, and Societe Generale. The anchor book also saw robust participation from domestic institutional investors, including leading mutual funds like HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Mirae Asset Mutual Fund, and Invesco Mutual Fund. Additionally, insurance giants such as Max Life Insurance and Aditya Birla Sun Life Insurance have also joined the investment bandwagon.
Upcoming IPO Details
The highly anticipated initial public offering (IPO) is set to open on May 26, 2025, and will conclude on May 28, 2025. With a total issue size of ₹3,500 crores, the IPO comprises a fresh issue of ₹2,500 crores and an offer for sale (OFS) worth ₹1,000 crores. The price band for the shares has been set between ₹413 and ₹435, making it an attractive proposition for both institutional and retail investors. The shares are expected to be listed on June 2, 2025, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Management and Oversight
The IPO is being managed by a consortium of financial heavyweights, including JM Financial, Kotak Mahindra Capital, Axis Capital, Morgan Stanley, and SBI Capital. KFin Technologies is acting as the registrar to the issue, ensuring a smooth process for investors.
Company Overview
Incorporated in 2019, Schloss Bangalore Limited has quickly established itself as one of India’s largest luxury hospitality firms, boasting a portfolio of 12 properties with a total of 3,382 keys under The Leela Palaces, Hotels, and Resorts brand. The company’s flagship properties, located in major cities such as Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur, are wholly owned and exemplify a blend of regal Indian architecture and modern hospitality, catering to high-end business and leisure travelers.
Diverse Offerings
Beyond luxurious accommodations, Schloss Bangalore operates 67 fine-dining restaurants and bars, as well as 12 wellness centers. Notably, the flagship spa at The Leela Palace Bengaluru is being developed in collaboration with the luxury wellness brand Soneva, further enhancing the company’s appeal to discerning guests.
Financial Performance and Future Plans
Despite facing challenges, Schloss Bangalore has shown resilience in its financial performance. The company reported a loss of ₹36 crores for the period ending May 2024, a significant improvement from a loss of ₹319 crores in FY22. Revenues surged to ₹1,226 crores in FY24, up from ₹415 crores in FY22, indicating a strong recovery trajectory post-COVID.
The company plans to utilize ₹2,300 crores from the IPO proceeds to repay or prepay borrowings across itself and key subsidiaries, with the remainder earmarked for general corporate purposes. This strategic move is expected to strengthen the company’s balance sheet and position it for future growth.
Conclusion
Schloss Bangalore Limited’s IPO marks a significant milestone in India’s luxury hospitality sector, reflecting the growing investor confidence in this market. With its strong backing from Brookfield-managed funds and a robust portfolio of luxury properties, the company is poised for a promising future. As it prepares for its IPO, both institutional and retail investors are keenly watching this emerging player in the hospitality landscape.
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