India’s luxury hospitality space is about to have its moment on Dalal Street. The Leela Palaces, Hotels & Resorts – a name tied to luxury and service – has laid eyes on its maiden public offering on May 26, 2025, hoping to raise Rs 3,500 crore.
Backed by Brookfield Asset Management, one of the world’s largest alternative investment managers, this IPO is one of the most awaited listings in India’s consumer and tourism space this year.
IPO Structure & Valuation
The IPO consists of a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 1,000 crore by the promoters, Project Ballet Bangalore Holdings (DIFC), which is a subsidiary of Brookfield Asset Management.
The price band is Rs 413- 435 per share. The hotel operator is aiming for a valuation of approximately Rs 14,542 crore at the top end of the price band, based on Reuters’ calculations. The IPO will be available for subscription between May 26 and May 28, with anchor investor bidding done on May 23. Shares for the hotel operator are expected to begin trading on June 2. As of 22 May 2025, it is trading at a GMP of Rs 14 or 3% from the upper band of the bid price, i.e., Rs 413 (upper band).
Financial Highlights
The company had a very good financial turnaround in FY25. Revenue increased 14.7 percent to Rs 1,406.56 crore, while profit after tax swung from a loss of Rs 2.13 crore in FY24 to a positive Rs 47.66 crore in FY25. After all the losses, the net worth of the company was positive at Rs 3,604.99 crore, thanks to improved reserves. Total assets increased 17 percent to Rs 8,266.16 crore and borrowings decreased 8 percent to Rs 3,908.75 crore, indicating a healthier balance sheet.
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Why is this important?
The IPO comes as India’s luxury hotel market is recovering very well from the pandemic, helped by increasing domestic travel, inbound travel, and wealthier millennials. The Leela expects to capitalize on this up-cycle.
The Leela has several iconic sites across Delhi, Udaipur, Bengaluru and Goa, and is considered to be a premium hotel in the ultra-luxury hotel segment. The Leela has grown substantially since it was acquired by Brookfield in 2019, and has provided a professional management structure, growth capital and an asset-light strategy to effectively improve scale and operational efficiency; these are all very positive signals to institutional investors.
Where will the money be invested?
The proceeds of the new issuance (Rs 2,500 crore) will be used to reduce debt, which will improve the company’s balance sheet. It is estimated that there will be savings on interest costs and an improvement in cash flow, helping put the company in a position to grow, for example, in newer locations and experiences.
As of May 31, 2024, Schloss Bangalore counts among the largest luxury hospitality companies by key count in India, with 3,382 keys in its 12 hotel operations. Its brand includes The Leela Palaces, The Leela Hotels, and The Leela Resorts. The company owns five properties, manages six under hotel management agreements, and is franchising one hotel for a third-party owner.
With that in mind, retail investors should keep an eye on the financial health of the company after the listing, especially on margin expansion, operational leverage, and continued growth in occupancy rates.
Written by Satyajeet Mukherjee
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