Schloss Bangalore Limited owns, operates, manages and develops luxury hotels and resorts under the prestigious Leela brand. The Leela brand was ranked number 1 among the world’s best hospitality brands in 2020 and 2021 and remained among the top three hospitality brands globally in 2023 and 2024 as per Travel + Leisure World’s Best Awards Surveys. This recognition underscores Schloss Bangalore’s leadership position in luxury hospitality.

The company is launching an Initial Public Offering (IPO) as a Book Built Issue amounting to ₹ 3500 crore. The issue comprises a fresh issue of 574.71 lakh shares worth ₹ 2500 crore and an offer for sale of 229.88 lakh shares totaling ₹ 1000 crore. The subscription period opens on May 26, 2025 and closes on May 28, 2025. Allotment is expected by May 29, 2025, with shares tentatively listed on BSE and NSE around June 2, 2025.

The price band is fixed between ₹ 413 and ₹ 435 per equity share. At the upper price band of ₹ 435, Schloss Bangalore’s market capitalisation will be approximately ₹ 14,527.16 crore post IPO. The lot size is 34 shares per lot, with minimum retail investor commitment of ₹ 14,790. High Net Worth Individuals must invest at least 14 lots (476 shares), amounting to ₹ 2,07,060.

The IPO’s book running lead managers include 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 Capital Services Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited. KFin Technologies Limited is the registrar for the issue.

Financial Performance and Growth

Schloss Bangalore has shown strong growth in financials over recent years. Revenue from operations grew from ₹ 4,159.49 million in 2022 to ₹ 12,265 million in 2024 and further to ₹ 14,065.56 million for the nine months ended March 31, 2025. EBITDA improved substantially from ₹ 877.19 million in 2022 to ₹ 6,000.26 million in 2024 and ₹ 7,001.68 million in the nine months ended March 2025. Profit after tax turned positive recently with ₹ 476.58 million in the nine months ended March 31, 2025 after losses in prior years, indicating improving profitability.

Key ratios show pre-issue Earnings Per Share (EPS) of ₹ 1.97 and post-issue EPS of ₹ 1.43 for FY24. The pre-issue Price to Earnings (P/E) ratio stands at 220.18 times while post-issue P/E ratio increases to 304.82 times. These valuations are high compared to industry P/E of 95. The company’s Return on Equity (ROE) and Return on Net Worth (RoNW) for FY24 are low at 1.32 percent. The IPO appears fully priced given these metrics.

Grey Market Premium and Listing Outlook

The Grey Market Premium (GMP) is currently zero, indicating no expected listing gains based on current demand. Since GMP arises from unregulated trading, it should be considered for informational purposes only.

Given the fully priced valuation, high P/E ratios, and modest profitability, investors seeking listing gains should be cautious. Long term investors may consider the company’s strong brand and growth potential in luxury hospitality.

About the Promoters

The promoters of Schloss Bangalore include Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, BSREP III Joy (Two) Holdings (DIFC) Limited, BSREP III Tadoba Holdings (DIFC) Pvt Ltd, Project Ballet Chennai Holdings (DIFC) Pvt Ltd, Project Ballet Gandhinagar Holdings (DIFC) Pvt Ltd, Project Ballet HMA Holdings (DIFC) Pvt Ltd and Project Ballet Udaipur Holdings (DIFC) Pvt Ltd. These investors bring strong institutional backing and global expertise.

For more details contact
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 Capital Services Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited

KFin Technologies Limited
Registrar

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