The Leela’s Mega $400-Million IPO Now Has a Date
Photo Credit: Courtyard of The Leela Palace Jaipur. The Leela
Skift Take
The timing couldn't be better: The Leela-parent Schloss Bangalore is gearing up for a mega IPO to drive diversification and expansion just as the hotel industry in India is heating up.
Schloss Bangalore, the parent group of Indian luxury hospitality brand The Leela Palaces, is ready for its initial public offer (IPO). The INR 35 billion ($409 million) IPO is set to go live on May 26, as listed on the National Stock Exchange. The company had received approval for its IPO from regulator Securities and Exchange Board of India (SEBI) in December last year.
While the Draft Red Herring Prospectus (DRHP) of Schloss Bangalore filed last September sought approval for a massive INR 50 billion ($599 million) IPO, the finalized Red Herring Prospectus (RHP) filed on Tuesday revised this down to INR 35 billion. This includes a fresh issue of up to INR 25 billion ($292 million) and an offer for sale by promoter Project Ballet Bangalore Holdings of up to INR 10 billion ($117 million).
Plans for IPO Proceeds: As per its prospectus, the company aims to use the IPO proceeds to the tune of INR 23 billion ($269 million) for debt reduction.
