Leela Hotels Launches Ambitious ₹3500 Crore IPO

In a landmark development within India’s luxury hospitality sector, Schloss Bangalore, the parent company of The Leela Hotels, has launched its much-anticipated initial public offering (IPO). The IPO, which opened today, is aimed at raising a total of ₹3500 crore, comprising a fresh issue of ₹2500 crore and an offer for sale (OFS) worth ₹1000 crore by existing shareholders.

The price band for the IPO is set between ₹413 and ₹435 per equity share, with the subscription window open from May 26 to May 28. Market analysts believe this pricing reflects strong investor appetite for premium hospitality assets, especially in a post-pandemic era where travel and tourism are rebounding robustly.

Founded in 1986, The Leela is one of India’s most iconic luxury hotel brands, known for its grand palaces, impeccable service, and world-class locations. With properties across key business and leisure destinations such as New Delhi, Mumbai, Bengaluru, and Goa, The Leela has carved a distinct identity in the Indian and global hospitality space.

Schloss Bangalore plans to use the proceeds from the fresh issue primarily for debt repayment, expansion of its hotel portfolio, and modernization of existing properties. The move is expected to significantly strengthen its balance sheet and support its ambitious growth plans, including entry into newer markets and the addition of luxury resorts.

Industry observers see this IPO as a benchmark for the Indian hospitality sector, which is witnessing increased investor interest amid rising domestic tourism and inbound international travel. The company’s ability to maintain high occupancy rates, superior average room revenues (ARR), and a loyal customer base has positioned it as a strong performer in a competitive space.

Trading of the shares is set to commence on June 2, 2025, on both NSE and BSE. This public offering is not only a capital-raising exercise but a strategic signal that The Leela brand is ready to scale new heights under the public market spotlight.

For institutional investors, high-net-worth individuals, and retail participants, this IPO offers a rare chance to own a stake in a company that blends heritage with profitability. Paras & Company views this listing as a catalyst that could trigger further consolidation and valuation recalibration in the Indian luxury hospitality industry.