Brookfield-Backed Leela Luxury Hotels Set to Begin Trading in Mumbai

Schloss Bangalore Ltd., backed by Brookfield Asset Management, is set to begin trading in Mumbai after raising $409 million in India's second-largest IPO this year. The company owns five luxury hotels, including the Leela Palace Udaipur, and plans to use the proceeds to add seven new hotels in India, which is seeing growth in travel and luxury spending. Hotel stocks have outpaced India's benchmark index, driven by a growing middle class.

Schloss Bangalore Ltd., backed by Brookfield Asset Management, is set to begin trading in Mumbai after raising $409 million in India's second-largest initial public offering (IPO) this year. The company, which operates under the Leela brand, sold its shares at 435 rupees apiece, the top end of their marketed range [1]. The IPO raised 35 billion rupees ($409 million), second only to Hexaware Technologies Ltd.’s billion-dollar deal this year in India [1].

Leela hotels are renowned for their luxury and are regularly recognized among the best in the country. Schloss Bangalore Ltd. owns five properties across India, including the opulent lakeside Leela Palace Udaipur, where guests make their way to the hotel on boats. The company is counting on the proceeds from the IPO to help it add seven new hotels as India's burgeoning middle class drives up spending in travel and luxury in the world’s most populous country [1].

Hotel stocks including Indian Hotels Co., EIH Ltd. and Chalet Hotels Ltd. have outpaced the country’s benchmark index on the back of this growth. Schloss Bangalore Ltd. turned profitable last fiscal year after posting at least two annual losses, according to its prospectus [1].

The Leela hotel chain was founded by a retired soldier, Captain CP Krishnan Nair, in 1986. The Leela Palaces, Hotels and Resorts, one of the country’s most luxurious hotel brands, made its debut on the stock market on Monday, May 26, nearly 40 years after its inception [2]. Brookfield Asset Management now owns The Leela Hotel and has launched this IPO to raise Rs 3,500 crore from the market. The share price is set between Rs 413 and Rs 435 per unit, with investors required to purchase at least 34 shares, amounting to a minimum investment of Rs 14,790. An investor can buy a maximum of 13 lots, equating to 442 shares worth Rs 1,92,270 [2].

The IPO comes at a time when India’s IPO market, one of the world’s busiest last year, has slowed down in 2025 after US President Donald Trump’s tariffs unsettled markets. However, the benchmark index has been rallying of late, leading some bankers to voice optimism about future listings in the country [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-06-02/brookfield-backed-leela-luxury-hotels-to-begin-trading-in-india
[2] https://www.news18.com/business/built-by-retired-soldier-sold-by-sons-why-leela-hotels-waited-40-years-for-ipo-ws-dkl-9354399.html