Leela Palaces parent firm Schloss Bangalore IPO subscribed 4.50 times

New Delhi: The initial share sale of Schloss Bangalore, which operates Leela Palaces Hotels and Resorts, received 4.50 times subscription on the closing day of bidding on Wednesday.

The Initial Public Offer (IPO) received bids for 20,96,73,206 shares against 4,66,10,169 shares on offer, as per NSE data.

The portion for Qualified Institutional Buyers (QIBs) attracted 7.46 times subscription while the quota for non institutional investors got subscribed 1.02 times. The category for Retail Individual Investors (RIIs) fetched 83 per cent subscription.

Schloss Bangalore Ltd has garnered Rs 1,575 crore from anchor investors.

The issue has a price band of Rs 413-435 per share.

The company's Rs 3,500-crore IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) of stocks valued at Rs 1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.

Schloss Bangalore, which is backed by Brookfield Asset Management, plans to use the proceeds of the fresh issue to pay loans availed by the company and its subsidiaries and for general corporate purposes.

Schloss Bangalore, known for its luxurious hotels and resorts under "The Leela" brand, had a portfolio of 3,382 keys across 12 operational hotels as of May 31, 2024. Its portfolio includes The Leela Palaces, The Leela Hotels, and The Leela Resorts, located across 10 destinations in the country.

The IPO is managed by a consortium of 11 merchant bankers -- JM Financial, BofA Securities India, Morgan Stanley India Company, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.