Leela Hotels IPO Opens May 26; Anchor Book Raises ₹1,575 Crore

Schloss Bangalore Raises ₹1,575 Crore from Anchor Investors

Strong Anchor Book Response Ahead of ₹3,500 Crore IPO

Brookfield-backed Schloss Bangalore Pvt Ltd, the company operating luxury hotels and resorts under the Leela Hotels brand, has successfully raised ₹1,575 crore via the anchor investor book on May 23, just ahead of the company’s initial public offering (IPO) scheduled to open on May 26. The IPO, which closes on May 28, comprises a total issue size of ₹3,500 crore, including a fresh issue of shares worth ₹2,500 crore and an offer-for-sale (OFS) of ₹1,000 crore by its promoter Project Ballet Bangalore Holdings (DIFC).

Highlights:

• IPO opens May 26 and closes May 28, 2025.

• Total size: ₹3,500 crore (₹2,500 crore fresh issue + ₹1,000 crore OFS).

• Anchor book raised ₹1,575 crore from marquee global and domestic investors.

• Price band fixed at ₹413–₹435 per equity share.

Price Band, Anchor Allocation, and Key Global Backers

The IPO will be conducted via book-building route, with a price band fixed at ₹413 to ₹435 per share. Schloss Bangalore confirmed in its exchange filing that it has allocated 3.62 crore equity shares to anchor investors at the upper band price of ₹435 per share.

The anchor book witnessed participation from several globally reputed institutions, including:

• WF Asian Reconnaissance Fund

• Government Pension Fund Global

• CLSA Global Markets

• Eastspring Investments

• Citigroup Global Markets

• Societe Generale

• Fidelity

• Goldman Sachs

• Hudson Bay Master Fund

• Tocu Europe

• Morgan Stanley

The substantial commitment by such names is seen as a strong vote of confidence in the company’s brand strength, operational history, and market prospects.

Highlights:

• Anchor shares priced at ₹435 per share.

• 3.62 crore shares allocated to anchor investors.

• Global investors include Goldman Sachs, Citigroup, Fidelity, and Morgan Stanley.

Domestic Participation: Mutual Funds and Insurers Step In

On the domestic front, major mutual funds and insurance companies took significant allocations in the anchor book. Participating institutions include:

• HDFC Mutual Fund

• ICICI Prudential Mutual Fund

• Nippon Life India

• 360 ONE Special Opportunities Fund

• WhiteOak Capital

• Invesco

• Axis Max Life Insurance

• Aditya Birla Sun Life Insurance

• Mirae Asset

• SBI General Insurance Company

According to Schloss Bangalore’s filing, 1.42 crore equity shares were allocated to 9 domestic mutual funds, spread across 20 different schemes, indicating a widespread institutional appetite within the Indian market.

Highlights:

• 1.42 crore shares allocated to 9 domestic mutual funds via 20 schemes.

• Major Indian investors include HDFC MF, ICICI Pru, Nippon Life, Mirae Asset.

• Shows robust interest from local long-term investors.

IPO Proceeds: Focus on Debt Reduction and Corporate Purposes

From the fresh issuance component of ₹2,500 crore, ₹2,300 crore will be earmarked for repaying outstanding debt, significantly strengthening the company’s balance sheet and reducing interest burden. The remaining ₹200 crore will be used for general corporate purposes, supporting business expansion and operations.

Schloss Bangalore currently operates 13 luxury hotels in India, comprising 3,553 keys, positioning itself as a prominent player in the high-end hospitality sector. The company directly competes with Indian Hotels, EIH, Chalet Hotels, Juniper Hotels, and ITC Hotels — all publicly listed peers in the same segment.

Highlights:

• ₹2,300 crore to be used for debt repayment.

• ₹200 crore to go towards general corporate purposes.

• Operates 13 luxury properties with over 3,500 rooms across India.

Merchant Bankers and IPO Management Consortium

The Leela Hotels IPO is being managed by a consortium of leading domestic and international investment banks, including:

• JM Financial

• BofA Securities India

• Morgan Stanley India Company

• JP Morgan India

• Kotak Mahindra Capital

• Axis Capital

• Citigroup Global Markets India

• IIFL Capital Services

• ICICI Securities

• Motilal Oswal Investment Advisors

• SBI Capital Markets

With such a broad and experienced syndicate, the IPO is being positioned as one of the most high-profile hospitality offerings in the Indian equity markets in recent years.

Highlights:

• Managed by top-tier bankers including Morgan Stanley, Citi, JP Morgan, Kotak.

• IPO viewed as a landmark offering in India’s hospitality and tourism sector.

• Reflects investor confidence in premium hotel segment post-COVID recovery.