Leela Palaces Hotels & Resorts Plans Major IPO
Leela Palaces, Hotels and Resorts, a luxury hotel chain that epitomizes opulence and hospitality in India, is gearing up for a monumental Initial Public Offering (IPO). With plans to file draft documents imminently, the company aims to raise an astounding ₹5,000 crore, marking it as the largest IPO ever within the country’s hotel sector. Established in 1986 by CP Krishnan Nair, Leela Palaces has gained recognition for its exquisite properties and top-notch service and is currently owned by Brookfield Asset Management.
IPO Details and Objectives
According to sources, this upcoming IPO is considered a significant event for the hospitality industry. The IPO will comprise the issuance of new shares valued at ₹3,000 crore, which will primarily be directed toward growth capital initiatives. Additionally, there will be an offer for sale amounting to ₹2,000 crore, allowing Brookfield, the current promoter, to reduce its stake in the company.
Management of the Share Sale
This massive share sale will be managed by an experienced consortium of 11 investment banks, including top names in the financial sector such as:
| Investment Banks |
|---|
| Kotak Mahindra Capital |
| JM Financial |
| BofA Securities |
| Morgan Stanley |
| JP Morgan |
| Axis Capital |
| Citi |
| ICICI Securities |
| IIFL Capital |
| Motilal Oswal |
| SBI Caps |
Background Information
In March 2019, Brookfield made headlines by acquiring four properties owned by Leela Palaces located in major cities including Delhi, Bengaluru, Udaipur, and Chennai for ₹3,950 crore. It’s important to note that Leela Mumbai will not be part of this IPO, as it is already publicly listed under Hotel LeelaVenture Limited (HLV).
Future Expansion Plans
Leela Palaces, under Brookfield’s stewardship, has ambitious plans to expand its footprint in India, targeting approximately 20 properties across the country. The brand’s journey began with just 8 hotels and has expanded to 15 luxurious locations, reflecting its commitment to excellence and growth in the hospitality sector.
Conclusion
The impending IPO of Leela Palaces Hotels & Resorts is poised to make waves in the hospitality market, offering investors a unique opportunity to participate in the growth of one of India’s premier hotel chains. With a clear strategy for growth and a solid operational foundation, Leela Palaces is set to redefine luxury and hospitality in the coming years.
