Leela hotels owner Schloss Bangalore files IPO papers to raise for $599 million

Schloss Bangalore, owner of Indian luxury resort chain ‘The Leela’, has filed for a $599 million IPO on Friday (September 20), aiming to take advantage of the country’s red-scorching stock market.

Schloss is the most up-to-date in a string of Indian firms rushing to lunge public in a stock market that’s cruising at file highs and is trailing only Wall Avenue’s Nasdaq and S&P 500 as the top-performing indexes this twelve months.

As of mid-September, about 235 firms non-public gone public in the country and raised bigger than $8.6 billion, which exceeds the total amount raised final twelve months, LSEG information confirmed.

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Schloss is issuing novel shares worth 30 billion rupees, while shareholder Mission Ballet Bangalore Holdings (DIFC), an affiliate of Brookfield Asset Management, is selling shares worth 20 billion rupees.

The firm, which operates 12 luxury hotels all over India and is planning to add eight extra through 2028, acknowledged this might occasionally maybe well well employ proceeds from the novel discipline to repay debt.

Sustained lumber ask and a hit listings of resort firms, comparable to Samhi Hotels and Juniper Hotels non-public inspired investor self belief in the sector.

“The rebound in tourism after the pandemic, especially corporate travel, and an exuberant primary market gives hotel firms an excellent opportunity to take their businesses public,” Kranthi Bathini of WealthMills Securities acknowledged.

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Schloss’ consolidated annual losses narrowed to 21.3 million rupees in fiscal-ended March 2024 from 616.8 million rupees, a twelve months ago. Income per on hand room (RevPAR), a key metric for resort owners and operators, rose nearly 23% on-twelve months to 9,592 rupees in the fiscal-ended March 2024.

India’s hospitality market is estimated to grow to $31 billion by 2029, from $24.6 billion in 2024. Morgan Stanley, BofA Securities, JPMorgan and Citi are amongst the discipline’s e-book operating lead managers.