Schloss Bangalore Completes Record Rs 3,500 Cr IPO

Schloss Bangalore Limited, operator of The Leela Palaces, Hotels & Resorts, completed its Rs 3,500 crore IPO, the largest in India's hospitality sector. The IPO included a fresh issue and an offer for sale, raising Rs 1,575 crore from anchor investors such as Goldman Sachs, HDFC MF, and Fidelity. Qualified Institutional Buyers (QIBs) oversubscribed their portion, while retail and non-institutional investor participation was more subdued, resulting in an overall subscription of 1.59 to 4.5 times depending on sources. The company's high valuation and reliance on a few properties raised some concerns, but strong margins and brand strength led many analysts to recommend subscribing for the long term. Shares are scheduled to list on the BSE and NSE on June 2, 2025, with a flat to modest grey market premium indicating a cautious debut. IPO proceeds will primarily be used to reduce debt and fund future expansion as Schloss targets growth in India's luxury hospitality market.