| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 431 to ₹ 435 | 34 | 26th Apr, 2025 – 28th May, 2025 | ₹3,500.00 Cr |
Schloss Banglore Limited IPO
Schloss Bangalore Limited, incorporated in March 2019 as Schloss Bangalore Pvt. Ltd., is promoted by global asset manager, Brookfield Group. The company operates in the hospitality sector, where it owns, operates, manages and develops luxury hotels and resorts under “The Leela” brand. The Leela brand, which was founded by the late Captain C.P. Krishnan Nair in 1986, is a premier luxury hospitality brand in India, renowned for its commitment to Indian hospitality, exclusivity, and personalized service. The company’s portfolio includes The Leela Palaces, The Leela Hotels, and The Leela Resorts. As of 31 March 2025, the company operates 13 luxury hotels with 3,553 keys, making it one the largest supplier of luxury hotel chains in India. This includes five owned properties, seven managed hotels, and one franchised hotel, strategically located across 13 major business and leisure destinations. Leveraging the company’s brand reputation, the Leela commands 1.4 times higher ARR and RevPAR of Rs. 22,545/- and Rs. 15,306/- in India as compared to its peers. Further, the company plans to expand with seven new hotels by 2028, adding approximately 678 keys and entering new segments such as wildlife, spiritual, and heritage tourism. These developments include new properties in Agra, Srinagar, Ranthambore, and Bandhavgarh, as well as serviced apartments in Mumbai. The brand also aims to enter residential and private club ventures, further diversifying its offerings and reinforcing its leadership in India’s luxury hospitality space.
Objective of the Belrise Industries IPO
The company Leela Hotels IPO proposes to utilize the net proceeds from the issue towards the following objects:
- Repayment/ prepayment/ redemption, in full or in part, of certain outstanding borrowings availed by: (a) the company, (b) certain of its subsidiaries, namely, Schloss Chanakya, Schloss Chennai, Schloss Udaipur and TPRPL, through investment in such subsidiaries.
- General corporate purposes.
Rationale To Schloss Banglore Ltd IPO
Leading luxury brand with marquee-owned hotels in markets with high barriers to entry
The Leela brand is associated with luxury and is established as a leading luxury hospitality brand, with 250 industry awards since January 2021. The company’s brand excellence is validated through comprehensive annual luxury audits by Leading Quality Assurance (“LQA”), one of the leading quality assurance audit service providers, where the company scored 82.9% in FY25. Founded in 1986, the brand has expanded to 13 operational properties totalling 3,553 keys as of March 31, 2025, comprising five owned, seven managed, and one franchised hotel. The company’s portfolio is spread across India’s top business and leisure destinations such as New Delhi, Bengaluru, Chennai, Udaipur, and Jaipur. These properties are strategically located in prime locations where acquiring large parcels of land is challenging. New hotel construction requires a significant gestation period in site development and operational stabilization, creating significant barriers to entry for new supply. Further, the company plans to expand with seven new hotels by 2028, adding approximately 678 keys and entering new segments such as wildlife, spiritual, and heritage tourism. The company’s expansions, strategically located iconic hotels with high barriers to entry, also lead to a network effect, which has strengthened its brand and enabled it to achieve premium pricing with ARR and RevPAR above industry level and increase global appeal.
Metal Processing: The company utilises over 700 robots for fabrication, ensuring low defect rates measured in parts per million and high production predictability. These robots have been in operation for several years, and the company has established unmanned manufacturing setups that began supplying seating sub-systems in 2015.
Polymer Processing: The company operates more than 100 injection molding machines with capacities up to 1,800 tons. This process incorporates critical techniques such as gas-assisted injection molding, polyurethane painting, and ultrasonic and vibration welding of plastic parts. This advanced automation enables the company to uphold high-quality standards while optimizing production timelines.
Suspension Systems: The company designs, develops, and manufactures a variety of suspension components, including shock absorbers, springs, forks, and steering columns. These components are produced using precision machining, casting, or forging processes. The company has been granted one patent for its innovative suspension designs.
As of December 31, 2024, the company’s design, engineering, and new product development team consists of 159 members. The company has collaborated on engineered products for clients, including the complete chassis system for a commercial vehicle platform from Tata Motors, as well as a fully automated manufacturing line for producing passenger vehicle seat slider systems for a major French automotive component manufacturer. Additionally, the company has set up a front visor manufacturing facility for Bajaj Auto.
Driving growth through market leadership and diversification
The company has demonstrated strong operational performance, with increasing revenue at a CAGR of 23%, driven by increased ARR and RevPAR across its owned portfolio through a structured, disciplined approach to asset management. The company commands a higher RevPAR than its peer due to its strategic investments, refurbishments, and upgrades in the current hotel portfolios. Additionally, to boost the company’s revenue further, it has created a comprehensive luxury ecosystem that caters to evolving customer preferences by providing luxurious accommodation, curated experiences, and F&B offerings with multiple cuisines, wellness offerings and several other amenities. This ecosystem has enabled the company to diversify its revenue base across non-room revenue sources such as F&B, MICE and banqueting venues. Currently, with the existing portfolio, the company operates 72 restaurants, bars and cafes, including F&B venues such as Jamavar, Library Bar, ZLB 23, Megu, China XO, Le Cirque and Sheesh Mahal. They also operate 13 spas and wellness sanctuaries, including a spa collaboration with Soneva, which is under development at Palace Bengaluru and expected to be completed by FY26. Additionally, the company is well equipped to host various activities, from corporate meetings and conferences to weddings and social gatherings, to capture the premium market share in India’s MICE sector.This ecosystem has enabled the company to attract a diverse clientele spanning leisure travellers, business travellers and groups, while diversifying the company’s revenue base across non-room revenue sources such as F&B, MICE and banqueting venues. For FY25, the company derived 56.96% of its room revenues from retail and leisure guests, 16.97% from corporate bookings and 25.45% from group bookings, demonstrating the strength of its diversified customer base.
Valuation of Belrise Industries IPO
The Indian hospitality industry is witnessing robust growth driven by rising disposable income. Due to this growing disposable income, the demand for tourism has outpaced the industry’s supply, leading to opportunities in the luxury segment. Schloss Bangalore Ltd., backed by global asset manager Brookfield Group, operates The Leela, a marquee luxury hospitality brand well-positioned to capitalize on India’s booming hospitality sector. With 13 premium properties across India’s top leisure and business destinations, the brand benefits from high barriers to entry, prime locations, and strong pricing power, reflected in ARR and RevPAR consistently above industry averages. The company’s luxury ecosystem includes 72 F&B venues, 13 wellness sanctuaries, and extensive MICE capabilities, enabling it to diversify revenues, with non-room income consistently exceeding 50%. However, the heavy dependency on the five key properties may create vulnerability to its revenue source. To mitigate this risk, the management has an expansion plan of adding seven new hotels with 678 keys across high-potential segments like heritage, wildlife, spiritual tourism, and serviced residences. Backed by Brookfield’s global expertise and prudent capital allocation, the company’s focus on premium markets in India and international destinations like the Maldives and Dubai, along with innovations like The Leela Clubs and branded residences, positions it to capture growing luxury demand and diversify revenue streams sustainably. Financially, the company has reported a revenue of Rs. 13,006 million in FY25, growing at a CAGR of 23% from FY23 to FY25. On the profitability end, the company registered a PAT of Rs. 480 million in FY25, driven by improved ARR, recovering from past years’ losses, mainly due to heavy interest payments. Currently, the company has debt of Rs. 35,857 million, and the management plans to use the amount raised from the IPO to repay its debt. The company is valued at a PE ratio of 220.8x on the upper price band based on FY25 earnings, which is comparatively higher than its peers. Considering the company’s expanding portfolio, favourable industry dynamics, entry into new market segments, and intention to repay debt, we recommend a “SUBSCRIBE” rating for this issue for a medium to long-term perspective.
1. What is the Schloss Banglore Limited IPO?
Schloss Banglore ltd IPO is a book built issue of Rs 2,500.00 crores. The issue is entirely a fresh issue of 2,500.00 crore shares. Belrise Industries IPO bidding opened for subscription on May 26, 2025 and will close on May 28, 2025. The allotment for the Schloss Banglore Limited IPO is expected to be finalized on Thrusday, May 28, 2025. Schloss Banglore Ltd IPO will list on BSE, NSE with tentative listing date fixed as Monday, 02, June 2025.
How to apply for the Schloss Banglore Limited IPO through StoxBox?
To apply for the Schloss Banglore Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Schloss Banglore Limited IPO open?
Schloss Banglore Limited IPO is opening on 26th May 2025.
What is the lot size of the Schloss Banglore Limited IPO?
The Lot Size of Schloss Banglore Limited IPO is 34 equity shares.
When is the Schloss Banglore Limited IPO allotment date?
The allotment Date for Schloss Banglore Limited IPO is 29th May 2025.
When is the Schloss Banglore Limited IPO listing date?
The listing Date for Schloss Banglore Limited IPO is 2nd Jun 2025.
What are the risks associated with investing in the Schloss Banglore Limited IPO?
Key Risks:
- Schloss Bangalore Ltd.’s success and its luxury “The Leela” brand depend heavily on public recognition and reputation, and any deterioration in brand perception due to factors like inconsistent service quality, negative publicity, accidents, third-party misuse of trademarks, or reputational damage from franchise arrangements could significantly harm the company’s business, financial condition, and operations
- A significant portion of the company’s income is derived from its five owned hotels, contributing 91-94% of total income over the past three financial years. This makes the company highly reliant on these properties, and any adverse developments such as increased competition, regional economic, political, or weather-related disruptions could negatively impact its business and financial performance.
- The company and certain of its material subsidiaries have incurred losses in the past, with losses of Rs. 21 million in FY24 and Rs. 617 million in FY23. They may continue to face financial challenges, impacting cash flows and financial conditions despite a Rs. 480 million profit in FY25, driven by improved occupancy, higher ARR, and cost optimization efforts. If these financial losses continue, it may strain the company’s cash flow and affect its long-term sustainability
When will the Schloss Banglore Limited IPO shares be credited to my Demat account?
Credit of Shares to demat account date is Fri, 30 May 2025
What is the Minimum amount investing in the Schloss Banglore Limited IPO?
The minimum investment amount for retail investors in the Schloss Banglore Limited IPO is ₹14,790.
When will Schloss Banglore Limited IPO shares be credited to my Demat account?
The Schloss Banglore Limited IPO be credited to the account on allotment date which is 30th May 2025. Login to your account now – https://campaign.StoxBox.in/redirect.html
What are the important dates related to Schloss Banglore Limited IPO?
| IPO Open Date | Mon, May 26, 2025 |
| IPO Close Date | Wed, May 28, 2025 |
| Basis of Allotment | Thu, May 29. 2025 |
| Initiation of Refunds | Fri, May 30, 2025 |
| Credit of Shares to Demat | Fri, May 30, 2025 |
| Listing Date | Mon, Jun 2 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on Fri 28 May, 2025 |
