Schloss Bangalore sets IPO price band at Rs 413-435; check key dates & details

Schloss Bangalore, the owner of the luxury hotel chain 'The Leela', is launching its initial public offering (IPO) with a price band set between Rs 413 and Rs 435 per share. Investors can place bids starting from 26 May, with the subscription closing on 28 May. A minimum bid requires 34 shares, aligning with the IPO's strategic entry on Dalal Street. The market capitalisation at the upper price band is expected to be Rs14,527 crore.

The IPO aims to raise Rs 3,500 crore, with plans to use Rs 2,300 crore from the net proceeds for debt repayment, while the remainder will address general corporate purposes. The offering has been curtailed by 30%, with Brookfield planning to sell shares worth Rs 1,000 crore, half of its initial plan.

Schloss Bangalore, established in 2019, operates under the 'The Leela' brand, focused on luxury hospitality in India. As of May 2024, the company manages 12 properties under The Leela Palaces, Hotels, and Resorts, including 3,382 keys, with significant locations in Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur.

Financially, Schloss has shown resilience despite recording losses of Rs 36 crore as of May 2024. The company narrowed its losses significantly from Rs 319 crore in FY22 to Rs 2.1 crore in FY24, with revenues climbing to Rs 1,226 crore in FY24. This improvement marks a recovery phase post-pandemic, highlighting a substantial increase from Rs 415 crore in FY22.

The IPO allocation is predominantly reserved for qualified institutional buyers (QIBs), taking up 75% of the total issue size. Notably, up to 60% of this allocation, equating to Rs 1,575 crore, may be reserved for anchor investors. Furthermore, 15% of the issue is set aside for non-institutional investors, and the remaining 10% for retail investors.

The lead managers orchestrating this IPO include notable financial institutions such as JM Financial, Bofa Securities India, and Morgan Stanley India, among others. Kfin Technologies has been appointed as the registrar for the IPO process. The allotment is scheduled to be finalised on 29 May, with shares expected to list on BSE and NSE by 2 June.

Key dates to note include the opening on 26 May, closing on 28 May, with the basis of allotment on 29 May. Refunds are expected to be initiated shortly after, with shares credited to demat accounts just before the anticipated listing on 2 June.