Leela Hotels Upcoming IPO at ₹3,500 Cr: Key Insights, Financials & SWOT Analysis

Brookfield-backed Schloss Bangalore Pvt Ltd, the operator of the iconic “The Leela Hotels in India, is all set to launch its highly anticipated initial public offering (IPO). The IPO, which aims to raise ₹3,500 crore, marks a significant step for one of India’s leading luxury hospitality players as it prepares to debut on the public market.

The company has revised its IPO size, bringing it down by 30% from the originally planned ₹5,000 crore to the current ₹3,500 crore, reflecting a more strategic fundraising approach. The offering consists of a fresh issue of 5.75 crore shares aggregating to ₹2,500 crore, and an offer for sale (OFS) of 2.30 crore shares worth ₹1,000 crore.

Leela Hotels IPO shares are trading at a ₹18 premium in the grey market. Source: LiveMint/ Moneycontrol

Leela Hotel’s IPO Details

Offer Price	₹413 to ₹435 Per Share
Face Value	₹10 Per Share
Opening Date	26th May 2025
Closing Date	28th May 2025
Total Issue Size (in Shares)	8,04,59,769
Total Issue Size (in ₹)	₹3,500.00 Cr
Issue Type	Bookbuilding IPO
Lot Size	34 Shares
Listing at	BSE, NSE

Company Overview

Founded in 2019, Schloss Bangalore has established itself as a strong force in India’s premium hospitality space. It manages 12 Leela-branded properties with 3,382 rooms. 

Competing with Indian Hotels, Chalet Hotels, EIH, and ITC Hotels, the company plans to utilise ₹2,300 crore from the fresh issue proceeds to repay debt across its entities. Its upcoming IPO coincides with a strong rebound in the tourism sector, presenting investors with a timely opportunity to enter the growing luxury travel market. Source: Moneycontrol

Company Performance and Financials

Although the company reported a loss of ₹36 crore for the period ending May 2024, it significantly reduced its losses from ₹319 crore in FY22 to ₹2.1 crore in FY24. Revenues also jumped from ₹415 crore in FY22 to ₹1,226 crore in FY24, reflecting a strong post-COVID-19 recovery. Source: CNBCTV18

SWOT Analysis of Leela Hotels

STRENGTHS	WEAKNESSES
Leela’s premium brand, heritage integration, and service excellence attract elite, high-paying clientele. Leela operates in India’s top business and tourist hubs, ensuring maximum visibility and demand. GHA DISCOVERY membership boosts global exposure and guest loyalty through exclusive travel benefits. Their properties feature luxurious rooms, fine dining, spas, and MICE facilities for premium experiences.	Past losses and high debt levels continue to raise financial stability concerns. Lack of international reach restricts access to global luxury travel markets. Premium services and amenities lead to significantly higher operational expense burdens. Heavy reliance on domestic demand makes it vulnerable to local economic shifts.
OPPORTUNITIES	THREATS
Rising incomes and tourism fuel growth in India’s luxury hotel segment. Leela plans aggressive growth via greenfield projects and rebranded property acquisitions. Tech-driven upgrades like smart rooms enhance guest experiences and operational efficiency. India’s expanding MICE sector offers strong potential for Leela’s upscale venues.	Competes with strong domestic and global luxury hotel brands in India. Oversupply or market saturation may pressure average room rates downward. Constant innovation is needed to meet the evolving expectations of younger luxury travelers. Hiring and retaining skilled staff remain difficult in the personalized luxury hospitality sector.

Other Key Details

Allocation Breakdown

• 75% of the issue is reserved for Qualified Institutional Buyers (QIBs)
• 60% of this (₹1,575 crore) earmarked for anchor investors
• 15% for Non-Institutional Investors (NIIs)
• 10% for Retail Individual Investors (RIIs)

Source: LiveMint

Key Managers of the IPO

The promoters of Leela Hotels consist of several Brookfield entities registered under the Dubai International Financial Centre (DIFC), including Project Ballet Bangalore Holdings Pvt Ltd, BSREP III Joy (Two) Holdings, Project Ballet Chennai Holdings Pvt Ltd, and Project Ballet Gandhinagar Holdings Pvt Ltd.

Book-Running Lead Managers (BRLMs)

A consortium of leading investment banks is managing the Leela Hotels IPO, ensuring strong financial oversight and execution. The book-running lead managers include JM Financial, BofA Securities, Morgan Stanley India, J.P. Morgan India, Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India, IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.

Conclusion

The IPO offers an opportunity to gain exposure to India’s growing luxury hospitality sector. Supported by Brookfield and backed by a portfolio of upscale properties and a strategic presence in key markets, Leela Hotels’ public issue aligns with the broader momentum in the premium travel and tourism space.

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