• October 7, 2024

Leela Palaces Gears Up for India’s Largest Hospitality IPO, Aiming to Raise INR 5,000 Crore

Brookfield Asset Management-owned Leela Palaces, Hotels & Resorts is preparing to file draft papers for what is set to be India’s largest-ever IPO in the hospitality sector, aiming to raise INR 5,000 crore, according to sources.

“This is a significant issue for the hospitality industry, and the filing with SEBI is expected soon. The primary offering will raise INR 3,000 crore for growth capital, while the secondary component of INR 2,000 crore will involve promoter Brookfield reducing its stake,” said one source, who requested anonymity.

The IPO will be managed by a consortium of 11 investment banks, including Kotak Mahindra Capital, JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Axis Capital, Citi, ICICI Securities, IIFL Capital, Motilal Oswal, and SBI Caps.

Brookfield and the investment banks have yet to comment on the planned IPO, with updates expected as the story develops.

Brookfield acquired four of Leela’s key properties in Delhi, Bangalore, Udaipur, and Chennai from JM Financial Asset Reconstruction Co. in March 2019 for INR 3,950 crore. Since then, the company has successfully revived the luxury hospitality chain. The upcoming IPO will not include Leela Mumbai, which is already listed under Hotel Leelaventure Ltd.

Ankur Gupta, Head of Asia Pacific and Middle East for Brookfield’s Real Estate Group, described the 2019 investment in Leela as a strategic move, not just a real estate acquisition but a bet on a luxury brand with significant potential for operational turnaround.

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