IPO Details
Issue Date
26 May - 28 May'25
Investment/lot
₹ 14790
Price Range
413 - 435
Lot Size
34
IPO Size
₹ 3500 Cr
Schedule of Schloss Bangalore Ltd IPO
Start date
26/05/2025
End date
28/05/2025
Allotment of bids
Refund Initiation
Listing on exchange
Issue Highlights
Initial public offering of up to [] equity shares bearing face value of Rs. 10 each (the Equity Shares) of Schloss Bangalore Limited (Company or Issuer) for cash at a price of Rs. [] per equity share (the Offer Price) aggregating up to Rs. 5000.00 crores (the Offer) comprising a fresh issue of [] equity shares aggregating up to Rs. 3000.00 crores (the Fresh Issue) and an offer for sale of up to [] equity shares aggregating up to Rs. 2000.00 crores by the promoter selling shareholder (as defined hereinafter) (the Offer for Sale and such equity shares, the Offered Shares). The company in consultation with the brlms, may consider an issue of specified securities through a preferential offer or any other method as may be permitted in accordance with applicable law to any person(s), for an amount aggregating up to Rs. 600.00 crores, with the roc (pre-ipo placement). The pre-ipo placement, if undertaken, will be at a price to be decided by the company in consultation with the brlms. If the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the securities contracts (regulation) rules, 1957 (scrr). The pre-ipo placement, if undertaken, shall not exceed 20% of the size of the fresh issue. prior to the completion of the offer, the company shall appropriately intimate the subscribers to the pre-ipo placement, prior to allotment pursuant to the preipo placement, that there is no guarantee that the company may proceed with the offer or the offer may be successful and will result into listing of the equity shares on the stock exchanges. further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement (if undertaken) shall be appropriately made in the relevant sections of the red herring prospectus and the prospectus. The face value of the equity shares is Rs. 10 each and the offer price is [*] times the face value of the equity shares. The price band and the minimum bid lot shall be decided by the company.
About Schloss Bangalore Limited IPO
Schloss Bangalore Limited IPO is an IPO aggregating up to ₹5,000 crores. It consists of an offer for sale aggregating up to ₹2,000 crores and a fresh issue aggregating up to ₹3,000 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Schloss Bangalore Limited IPO
- Repayment/ prepayment/ redemption, in full or in part, of certain outstanding borrowings availed by (a) the company and (b) certain of their subsidiaries, namely, Schloss Chanakya, Schloss Chennai, Schloss Udaipur and TPRPL, through investment in such subsidiaries.
- General corporate purposes.
Schloss Bangalore Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹2000 crores |
Fresh Issue | Aggregating up to ₹3000 crores |
EPS (₹) for the year ended March 31, 2024 | -0.12 |
Schloss Bangalore Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | At least 75% of the Issue |
Non-Institutional Investors (NIIs) | Not more than 15% of the Issue |
Retail Individual Investors | Not more than 10% of the Issue |
Industry Outlook
In 2023, the travel and tourism industry in India contributed 6.5% to the overall GDP, well below the global average of 9.1% (Source: WTTC Economic Impact Research (EIR) 2024)–highlighting the significant room for growth in the Indian hospitality industry.
According to the HVS Report, travel and tourism in India has largely rebounded to pre-COVID levels, and has significantly improved its appeal to international tourists. India is expected to see foreign tourist arrivals and domestic tourist visits growing at CAGRs of 7.1% and 13.4%, respectively, over 2024 to 2030 (Source: HVS Report). The luxury hospitality sector in India is also seeing a favourable demand-supply outlook, with demand expected to grow at a CAGR of 10.6%, while supply is expected to grow at a CAGR of 5.9%, over the Financial Year 2024 to 2028 (Source: HVS Report).
Company Information
Schloss Bangalore Limited own, operate, manage and develop luxury hotels and resorts under “The Leela” brand.
Their portfolio includes The Leela Palaces, The Leela Hotels and The Leela Resorts. They undertake their business primarily through direct ownership of hotels and hotel management agreements with third-party hotel owners.
Built at attractive locations, these hotels are designed as ‘modern palaces’ and aim to blend traditional Indian architecture with contemporary world-class amenities and services. Their properties are a luxury ecosystem, comprising of luxurious accommodations, curated experiences, wellness programs and award-winning food and beverage options.
Strengths of Schloss Bangalore Limited IPO
Leading luxury hospitality brand with rich heritage and global appeal.
They are the only institutionally owned and managed pure-play luxury hospitality company in India (Source: HVS Report). With over 250 industry awards since January 2021, The Leela brand is associated with luxury and is established as a leading luxury hospitality brand in the world. Their properties are widely recognised for the superior quality of architecture, guest facilities and services, repeatedly earning top rankings among the world’s best hotels and travel experiences by recognised publications such as Travel + Leisure and Conde Nast Traveler.
Marquee owned hotels in markets with high barriers to entry.
Their owned portfolio includes five iconic landmark hotels comprising 1,216 keys, across top business and leisure destinations in India –Bengaluru (Karnataka), Chennai (Tamil Nadu), New Delhi (Delhi), Jaipur (Rajasthan) and Udaipur (Rajasthan). Between the Financial Year 2019 and the Financial Year 2024, their owned portfolio demonstrated a 11.8% CAGR in RevPAR, significantly higher than the 8.6% CAGR of the overall luxury hospitality sector in India (Source: HVS Report).
Comprehensive luxury ecosystem resulting in diversified revenue sources.
The hotels in their portfolio have a comprehensive luxury ecosystem that caters to evolving customer preferences, by providing luxurious accommodation, curated experiences, and F&B venues offering award-winning dining experiences spanning multiple cuisines, award-winning wellness offerings and several other amenities. This ecosystem has enabled them to attract a diverse clientele spanning leisure travellers, business travellers and groups, while also diversifying their revenue base across non-room revenue sources such as F&B, MICE and banqueting venues. For the Financial Year 2024, they derived 51.9% of their room revenues from retail and leisure guests, 17.1% from corporate bookings and 31% from group bookings, demonstrating the strength of their diversified customer base.
Track record of driving operational efficiency by their Active Asset Management Approach.
As part of their asset management initiatives, they have invested in their assets towards refurbishment, upgrading and repurposing of underutilised spaces. Since April 1, 2021, substantially all the hotels in their owned portfolio were renovated, and they have implemented a ₹654.6 crores capital expenditure plan, 37.70% of which has been incurred as of May 31, 2024, across their owned portfolio that has helped enhance the performance of their portfolio
Risks of Schloss Bangalore Limited IPO
-
Their business is subject to seasonal and cyclical variations that could result in fluctuations in their results of operations.
-
The company has incurred losses (₹2.127 crores for the FY 2024, ₹61.679 crores in FY 2023 and ₹319.829 crores in FY 2022) in the past and may continue to experience losses in the future, which could result in an adverse effect on our business, cash flows and financial condition.
-
They are subject to extensive government regulation with respect to safety, health, environment, real estate, food, excise, tax and labour laws. Any non-compliance with, or changes in, regulations applicable to them may adversely affect their business, reputation, results of operations and financial condition.
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A significant portion of their total income is derived from five hotels (28.69% from The Leela Palace Bengaluru, 18.04% from The Leela Palace Chennai, 24.45% from The Leela Palace New Delhi, 14.51% from The Leela Palace Jaipur and 8.09% from The Leela Palace Udaipur for the Financial Year 2024) and any adverse developments affecting such hotels or regions could have an adverse effect on their business, results of operations and financial condition.
Schloss Bangalore Limited IPO Financials
Particulars (in Rs. crores)
Peers Comparison
| Parameter | Schloss Bangalore Limited | The Indian Hotels Company Limited | EIH Limited |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 1171.453 | 6768.750 | 2511.270 |
P/E | - | 77.27 | 37.25 |
EPS (Basic) (₹) | (0.12) | 8.86 | 10.22 |
Return on Net Worth (%) | NA | 13.13% | 16.58% |
NAV per share (₹) | (160.57) | 71.16 | 65.34 |
Anchor Investor Information: The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
JM Financial Limited
BofA Securities India Limited
Morgan Stanley India Company Private Limited
J.P. Morgan India Private Limited
Kotak Mahindra Capital Company Limited
Axis Capital Limited
Citigroup Global Markets India Private Limited
IIFL Securities Limited
ICICI Securities Limited
Motilal Oswal Investment Advisors Limited
SBI Capital Markets Limited
Registrar for the IPO is KFin Technologies Limited
Business Model
The company earns its revenue through the following sources:
- A luxury brand specialising in Indian hospitality offering their guests luxury experiences with premier accommodation, exclusivity and personalised services, inspired by the ethos of Indian hospitality.
Company Growth Trajectory
They have generated robust growth between the Financial Year 2022 and the Financial Year 2024, including in terms of revenue from operations, ARR, RevPAR and TRevPAR, driven by the strength of their brand’s reputation, their focus on guest satisfaction and operational excellence, the expansion of their portfolio and strong macro-economic factors. Further, their EBITDA margin for the Financial Year 2024 amounted to 48.92%, which, according to the HVS Report, was better than the EBITDA margin of their listed peers which ranged from 33.66% to 42.06%. In addition, the RevPAR of their owned portfolio was approximately 3 times of the overall hospitality industry in India times and 1.4 times of the luxury hospitality segment in India for the Financial Year 2024 (Source: HVS Report).
Company Market Position
They are the only institutionally owned and managed pure-play luxury hospitality company in India (Source: HVS Report).
As of May 31, 2024, they are one of the largest luxury hospitality companies by number of keys in India (Source: HVS Report), comprising 3,382 keys across 12 operational hotels. Their portfolio includes The Leela Palaces, The Leela Hotels and The Leela Resorts.
The Leela brand was ranked as #1 among the world’s best hospitality brands in 2020 and 2021, and among the world’s top three hospitality brands in 2023 and 2024, by Travel + Leisure World’s Best Awards Surveys.
Further, according to the HVS Report, their portfolio is present in six of the top seven business markets and three of the top five leisure markets of India. They account for nearly 18% of the total existing luxury keys across these markets that they are present in as of May 31, 2024 (Source: HVS Report).
Schloss Bangalore Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 380.107 | 860.058 | 1171.453 |
Profit/ loss Before Tax (₹ crores) | -367.771 | -60.559 | 19.429 |
Net profit / (loss) (₹ crores)[1] | -319.829 | -61.679 | -2.127 |
EBITDA (₹ crores) | 87.719 | 423.629 | 600.026 |
EPS (₹) | -18.2 | -3.5 | 0.12) |
Schloss Bangalore Limited Company Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit/(loss) before tax (₹crores) | -367.771 | -60.559 | 19.429 |
Net Cash from Operating Activities (₹ crores) | 72.208 | 318.316 | 538.784 |
Net Cash from Investing Activities (₹ crores) | -115.588 | -84.671 | -786.01 |
Net Cash from Financing Activities (₹ crores) | 271.141 | -317.77 | 146.994 |
Cash and Cash Equivalents (₹ crores)[1] | 227.761 | 84.125 | 100.232 |
How To Check Allotment Status of Schloss Bangalore Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Schloss Bangalore Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the KFin Technologies Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Schloss Bangalore Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
Schloss Bangalore Ltd IPO FAQs
What is the minimum lot size required for Schloss Bangalore Ltd IPO?
The minimum lot size is 34 shares and the investment required is ₹14790.
What is the price band of the Schloss Bangalore Ltd IPO?
The price band of Schloss Bangalore Ltd IPO is ₹413 to ₹435.
What is the Schloss Bangalore Limited IPO?
The Schloss Bangalore Limited IPO has an issue size aggregating up to ₹5,000 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Schloss Bangalore Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
Where can I read more about Schloss Bangalore Limited business?
You may read more about Schloss Bangalore Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: Schloss Bangalore Limited DRHP
