Yes, the work that the country's largest business house Tata Group could not do today, is going to be done by a company. After this feat, there has been an uproar in the whole country. According to the information, the parent company of Leela Palace Hotel is bringing the country's biggest IPO. Whereas the country's largest hotel company Indian Hotel, which belongs to Tata Group, could not do it. The company has applied to SEBI for IPO on Sunday. Let us also tell you how big an IPO the parent company of Leela Hotel is bringing and what other information has come out.
Schloss Bangalore Limited, the company that operates Leela Palace Hotels and Resorts, has filed preliminary documents with capital market regulator SEBI to raise Rs 5,000 crore through an IPO. This IPO is being considered as the biggest IPO of the hotel sector. The special thing is that even the IPO of the country's largest hotel chain company Indian Hotels was not so big, it operates the Taj Hotel. Leela Palace is also one of the biggest hotels in the country. Experts believe that Sheela Palace is bringing this IPO to expand its business.
According to the preliminary documents filed with the Securities and Exchange Board of India (SEBI), the company's proposed IPO includes fresh equity of Rs 3,000 crore and OFS of Rs 2000 crore. Actually, the promoter Project Ballet Bangalore Holdings (DIFC) Private Limited is issuing its shares through this IPO. The book running managers of this IPO are JM Financial, BoAF Securities India, Morgan Stanley India, JP Morgan India, Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India, IIFL Securities, ICICI Securities, Motilal Oswal Investment Advisors and SBI Capital Markets.
Schloss Bangalore, backed by Brookfield Asset Management, said the proceeds from the new issue will be used to repay the debt taken by the company and its subsidiaries and for general corporate purposes. Documents show that the company had a total borrowing of Rs 4,052.50 crore as of March 2024. The company may consider raising Rs 600 crore in the pre-IPO planning stage. If this happens, the size of the new issue will be reduced.
According to a Reuters report, Schloss's annual loss narrowed to Rs 213 million in the financial year ended March 2024 from Rs 616.8 million a year earlier. Revenue per available room for hotel owners and operators grew nearly 23 per cent year-on-year (YoY) to Rs 9,592 in the financial year ended March 2024. India's hospitality market is projected to grow from $24.6 billion in 2024 to $31 billion by 2029.
