Latest news with #Leela
Mint
9 hours ago
- Business
- Mint
Schloss Bangalore to build 250-room ‘Leela' luxury hotel in Mumbai's Bandra-Kurla Complex
Bengaluru: Brookfield-backed Schloss Bangalore will build a mixed-use project, including a 250-room 'Leela' luxury palace hotel, a 700,000 sq ft office tower and the Arq Club, in Mumbai's premium business district, Bandra-Kurla Complex (BKC). A consortium led by Schloss Bangalore has been allotted 2.1 acres in BKC by Mumbai Metropolitan Region Development Authority (MMRDA) for a ₹ 1,302 crore lease premium, the newly-listed company said in a regulatory filing on Tuesday. The land parcel in BKC's prime G block has a total permissible built-up area of over 3.62 lakh sq ft. Of the total payable premium for the 80-year lease, 25% is payable within two months of the offer of allotment, and the remaining 75% within 10 months thereafter. The Schloss Bangalore-led consortium that includes Arliga Ecospace Business Park and Schloss Chanakya had submitted its bid for the land parcel in February. Schloss Bangalore and subsidiary Schloss Chanakya will hold 50% in the consortium, while Arliga Ecospace Business Park will hold the remaining 50% stake along with its affiliates. 'The possession of the aforesaid plot shall be handed over after the payment of the total lease premium,' the filing said. Schloss, which operates 'The Leela' brand of hotels across cities, plans to open seven new 'Leela' branded luxury hotels in spiritual, hill stations, wildlife, heritage and grandeur, and business categories in the next three years. The new hotels will be built in Ayodhya, Ranthambore, Gangtok, Srinagar, Bandhavgarh, Agra, and Mumbai, as Schloss plans to expand its portfolio to 20 from 13 hotels, catering to the luxury traveller. Schloss has 13 hotels with 3,353 keys, and the seven new hotel projects will add another 678 keys. Five of the seven new hotels will be owned, and the remaining two will be managed or franchised. 'Our focus is on luxury, which is where demand is being generated. In comparison, the supply of luxury hotels is limited," Anuraag Bhatnagar, CEO, The Leela, said in an interview with Mint in May. In 2019, Hotel Leelaventure Ltd completed the sale of its hotel properties to New York-headquartered Brookfield Asset Management for ₹ 3,950 crore. C.P. Krishnan Nair set up the hotel chain in 1986.
Time of India
6 days ago
- Business
- Time of India
Scoda Tubes IPO subscribed 4.4 times so far on Day 2, GMP rises to 13%. Check details
Scoda Tubes IPO: The oversubscription was largely fueled by non-institutional investors (NIIs), who had subscribed to the issue 8.63 times by around 12:40 pm. Retail investors followed, subscribing 4.09 times, while qualified institutional buyers (QIBs) subscribed 1.8 times. Tired of too many ads? Remove Ads Scoda Tubes GMP: Scoda Tubes shares are trading at a premium of Rs 19–21 in the unlisted market, reflecting a grey market premium (GMP) of 13.6%. Scoda Tubes IPO key dates: The issue opened on May 28 and will close on May 30, with the allotment expected to be finalized by June 2. The stock is likely to list on the exchanges on June 4. Scoda Tubes IPO details: Scoda Tubes, incorporated in 2008, is engaged in the manufacturing of stainless-steel seamless and welded tubes, catering to core sectors such as oil & gas, chemicals, power, railways, and pharmaceuticals. Tired of too many ads? Remove Ads Scoda Tubes financial performance: Financially, Scoda Tubes has demonstrated strong growth over the past two years. Its revenue nearly doubled from Rs 194 crore in FY22 to Rs 400 crore in FY24, while profit after tax surged from Rs 1.63 crore to Rs 18.3 crore during the same period. The company also reported a significant improvement in operating performance, with EBITDA margin rising from 5.15% in FY22 to 14.7% in FY24, and return on equity (RoE) climbing to 28.77%. After sailing through on the first day of the bidding process, the initial public offering ( IPO ) of Scoda Tubes has garnered a total subscription of 4.4 times so far on the second oversubscription was primarily driven by non-institutional investors (NIIs), who, around 12:4 pm, had subscribed to the issue by 8.63 times. This was followed by the retail investors, who subscribed to the issue by 4.09 times and the qualified institutional buyers (QIBs), who subscribed to the issue by 1.8 company operates from Mehsana, Gujarat, with backward integration via a hot piercing mill, and has established a growing export footprint spanning 11 countries. Notably, exports contributed over 28% of total revenue in the first nine months of Tubes is looking to raise Rs 220 crore through a 100% fresh issue of shares, with the price band set between Rs 130 and Rs 140 per share. The offering comprises 1.57 crore to 1.69 crore equity shares and the stock will be listed on both the NSE and the company's cash flow efficiency remains a point of concern. Despite the sharp increase in revenue and profitability, cash generated from operations in FY24 stood at only Rs 2.26 read: The Leela IPO allotment to be finalised today: How to check status, GMP and listing details Brokerage firm Canara Bank Securities has recommended a 'SUBSCRIBE' rating for long-term investors. It noted that the company's technical expertise, rising export share, asset-backed expansion, and sector tailwinds position it well for scalable growth. While the IPO is priced at a P/E of 30.43x and a P/B of 8.76x -- broadly in line with industry peers -- investors should be mindful of cash flow concerns and customer concentration at Anand Rathi stated they believe that the company's key differentiator is its manufacturing process of its crucial raw material which enables backward integration, enabling Scoda Tubes to exercise greater control over production costs, reduce dependence on third-party suppliers, and improve overall operational the issue is fully priced, they gave a 'Subscribe for long term' rating for the summary, investors with a long-term view looking to tap into India's industrial and export manufacturing story may consider subscribing to Scoda Tubes IPO.
Economic Times
27-05-2025
- Business
- Economic Times
The Leela IPO booked 9% on Day 2 so far; GMP at 2.5%. Should you subscribe?
The Leela IPO, valued at Rs 3,500 crore, consists of a fresh issue worth Rs 2,500 crore and an offer for sale (OFS) totalling Rs 1,000 crore. The IPO opened for subscription on May 26 and will close on May 28. Share allotment is expected on May 29, while the company is scheduled to debut on the stock exchanges on June 2. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Leela GMP Here is what brokerage firms have to say about the issue: SBI Securities Tired of too many ads? Remove Ads Bajaj Broking Lemonn Markets Desk The Leela IPO key dates Continuing to receive a lagging response from the investors, the initial public offering (IPO) of Schloss Bangalore Limited , the operator of The Leela Palaces, Hotels & Resorts, has received only a 9% subscription so far on the second day of the highest subscription was witnessed in the retail investors category, which was booked 30% by 12 PM on Tuesday. Meanwhile, non-institutional investors (NIIs) and qualified institutional buyers (QIBs) had subscribed to their allocation by 6% and 3% issue, which opened for public subscription on Monday, was subscribed to by just 6% on the first IPO attracted a subscription of 20% from the retail investors, while the non-institutional investors (NIIs) and qualified institutional buyers (QIBs) subscribed to the issue by 3% each on the first of the launch of its public issue, the company secured Rs 1,575 crore from 47 prominent domestic and global anchor investors, with shares allotted at the upper end of the price band at Rs 435 Bangalore Limited allotted over 3.62 crore equity shares to anchor investors, including 1.42 crore shares allocated to nine domestic mutual funds across a total of 20 the top global funds that have invested in the company are Goldman Sachs, Fidelity, and Societe Rs 3,500 crore IPO comprises a fresh issue of Rs 2,500 crore and an offer for sale (OFS) valued at Rs 1,000 Bangalore shares are trading at a grey market premium of 2.5%, or Rs 11-12, in the unlisted market ahead of their D-Street company is valued at an FY25 EV/EBITDA multiple of 26.3x at post-issue capital of the upper price band. The company's Revenue/EBITDA has grown at a CAGR of 23%/25% respectively over the last 2 years, while on a net basis, the business has turned profitable in company's presence in the luxury space offers high growth opportunities as the luxury segment within the hospitality sector is likely to grow at a higher pace. The company will repay its debt from the IPO proceeds, which will result in lower D/E from the current 1.1x and improved Broking recommends subscribing to the issue for the long a revenue rise and EBITDA growth to Rs 600 crore in FY24, Schloss posted a net loss of Rs 2.13 crore for the year and an additional Rs 36.4 crore loss in the first two months of negative EPS (Rs –0.12) and net asset value (Rs –160.57) make standard valuation ratios like P/E and RoNW irrelevant or company's valuation appears steep compared to profitable peers like Indian Hotels and EIH, despite its strong brand and asset-light model. Investors are advised to approach the IPO with caution, as it is more of a brand-led growth bet than one backed by current Gaurav Garg of Lemonn Markets Desk said that Schloss Bangalore IPO is a long-term bet on the formalisation and premiumization of India's travel and hospitality sector. Investors with a patient outlook and appetite for high-quality consumption should consider subscribing to the issue.'As the company deleverages and executes its expansion plans, shareholders may be well-positioned to benefit from compounding gains in a high-margin business,' he IPO of Schloss Bangalore Limited (The Leela) opened for subscription on May 26, and will close on May 28. Share allotment is expected on May 29, while the company is scheduled to debut on the stock exchanges on June 2.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Mint
26-05-2025
- Business
- Mint
Leela Hotels' ₹3,500 crore IPO to test investor appetite for India's luxury travel boom
Mumbai: Leela Palaces, Hotels and Resorts' ₹3,500 crore initial public offering (IPO)--the largest ever in Indian hospitality--is testing investor appetite for luxury tourism stocks amid a tepid primary market. The listing will expand the roster of publicly traded luxury hotel chains beyond Indian Hotels Company, which runs the Taj brand, and EIH Ltd, the parent of Oberoi Hotels. The offer includes a fresh issue of shares worth ₹2,500 crore and a ₹1,000 crore offer for sale by its New York-based promoter Brookfield Asset Management, according to the company's red herring prospectus. Investors can subscribe to shares of Schloss Bangalore, the sole owner of the Leela brand, at ₹413– ₹435 apiece during 26–28 May. The IPO also serves as a litmus test for sentiment in a sluggish primary market, especially with heavyweights like the National Stock Exchange still await clearance to list. Read this | Leela to retain its 'niche, complete luxury' hotel identity even after IPO: CEO Still, subdued investor sentiment has resulted in a more rational valuation for Leela's stock, despite recent fierce returns from rivals, said Taher Badshah, CIO at Invesco Asset Management (India). 'Leela may not necessarily offer immediate listing day gains. But it is definitely providing a cheap entry into the luxury segment which is expected to grow faster than the broader hospitality sector, especially in terms of value," Badshah said. Demand for premium experiences is driving a strong upcycle in the hotel industry, bolstering margins and profitability across luxury operators, according to industry experts. With high average room rates and strong brand positioning, luxury hotels are well-placed to sustain bottomline growth, something increasingly rare in India Inc. Leela currently operates 13 hotels, with average room rates (ARR) and revenue per available room (RevPAR) of ₹22,545 and ₹15,306, respectively, for FY25, about 1.4x the luxury segment average in India. It also boasts the highest Ebitda margin in the industry at nearly 50%, one of its key strengths, at least on paper. Chink in the armour However, the company's crushing net debt of ₹2,567 crore eats into most of its profits through interest payments. Despite its high operating profitability, Leela has posted losses until FY24 and is set to deliver the lowest net margin, at 3.4% among peers in FY25, per its prospectus. Much of the IPO proceeds of ₹2,300 crore will go towards debt repayment. That raises key questions: Will Leela have enough free cash flow to fund its capital expenditure plans? How will it strike a balance between growth and deleveraging? Read this | Travel startups and indulgent Indians: A match made over dream destinations and luxury escapades 'Post IPO, the company's net debt will be close to zero. This means there will be ample liquidity available through internal accruals to finance future capex," Ankur Gupta, managing partner and head of Asia Pacific and Middle East at Brookfield Asset Management told Mint. 'Even at the project level, we can borrow for construction and then pay it down with accruals from that property over a period of time. A combination of minimal debt and internal accruals should be sufficient for the current pipeline," he said. Leela plans to add 678 rooms across seven new hotels by 2028. Some will be owned and operated by Schloss Bangalore, while others will follow a management-contract model. The expansion includes palace-style hotels in Agra and Srinagar, wildlife resorts in Ranthambore and Bandhavgarh, a Hyderabad hotel, and serviced apartments near Mumbai airport. Still, analysts caution that rivals have more aggressive expansion plans to tap into India's growing demand for luxury hotels, potentially limiting its market share gains. In FY24, Leela's average occupancy rate stood at 63%, well behind Indian Hotels Company's 77%, underscoring the intensity of competition. Experts attribute this gap to stronger brand recall enjoyed by rivals like Taj and Oberoi. Leela's smaller, less diversified portfolio also makes it more vulnerable to seasonal swings in tourism demand, they noted. Since most of Leela's new properties won't be operational until 2028, the company also risks missing out on capitalising fully on the current luxury upcycle. Also read | Where are Indians travelling in 2025? That may partly explain its lower valuation: Leela has been priced at 27 times enterprise value to Ebitda for FY25, compared to 30–34x for peers like Chalet Hotels and IHCL, according to a source managing the IPO. Luxury tailwinds Despite slower volume growth, Leela's premium positioning could still deliver meaningful value growth. Supply addition is typically slower in the luxury segment, so room rates might hold up better even during a downturn, as consumers are less sensitive to prices in this segment, said Invesco's Badshah. In fact, India's luxury ARR at $175-200 is significantly lower than the global average of $579. Meanwhile Leela projects excess demand for luxury hotel rooms to result in an 8% compound annual growth rate for the industry's ARR till FY28, according to the red herring prospectus. This indicates a significant opportunity for value growth in the luxury segment given the current demand-supply mismatch expected to persist there. Also read | JP Morgan's Mookim seeks bright spots amid earnings lull in Indian markets 'Leela operates in and leads a niche segment which is somewhat immune to economic cycles. Now that it is somewhat cheaper, it can be a good long-term play," Badshah said.
Mint
23-05-2025
- Business
- Mint
Leela to retain its 'niche, complete luxury' hotel identity even after IPO: CEO
The Leela Palaces, Hotels and Resorts, which is set to launch the largest initial public offering (IPO) in India's hospitality space to fund its expansion, is clear that it won't allow scale to dilute its core identity. The luxury hotel chain, operated by Brookfield-backed Schloss Bangalore Ltd, says it will remain a distinct, pure-play luxury brand with a sharp focus on high-end hospitality, as it prepares to raise ₹3,500 via the public offer that opens on Monday. "Ours will be a niche, complete luxury hotel offering," Anuraag Bhatnagar, chief executive officer, Schloss Bangalore Ltd, told Mint. Also Read | IPO-bound Schloss to spread Leela hotels in India, explore new luxury ventures The Leela Palaces IPO price band has been set at ₹413- ₹435 per share. The company's vision is clear, and will be focused on luxury hotels, continuing with its 40-year legacy. "This is a very nuanced and a very niche space we have created. We are the only institutionally managed pure-play luxury hotel company in India and it has taken us years to reach here. It's not easy to perfect this kind of an ecosystem of luxury and we have refined our vision and this will be our moat going forward too," Bhatnagar said. The company has 13 hotels that are currently operational and another 700-odd rooms are in active development across different cities. Leela owns over 10%, or 3,500 of India's luxury hotel inventory of nearly 30,000 rooms. "When we look at industry data, we are charging on an average, 40% premium (or 1.4 times) on our luxury hotel rooms than any other luxury player in the country and luxury rooms themselves charge two-and-a-half times higher in terms of revenue per available room than the regular industry average. This number is ₹15,300, which is higher than the industry average of ₹11,000. We have a long runway ahead" he said. Revenue per available room, or RevPAR, is a metric by which hoteliers measure performance of the total hotel rooms they have. It is calculated by dividing the total room revenue by the total number of rooms available. Also Read | 'Leela deal worth the price; such assets not built quickly' Average daily rates, or the rates that hotels charge per day per room, in the luxury segment are far lower in India than their overseas counterparts, including hotels in the Middle East and Asia Pacific, giving companies like The Leela Palaces more room for growth, Bhatnagar said. According to hospitality consultancy firm Hotelivate's October 2024 report, India had a total branded hotel inventory of approximately 180,000 rooms as of FY24, with around 39% of these falling into the upscale and luxury segments. India now has about 200,000 or more branded hotel rooms, with the number expected to shoot past 300,000 rooms by FY30, according to another hospitality consultancy Horwath HTL. Also Read | Leela, Hyatt or Radisson? Summer brings out India's best hotel deals Bhatnagar said that the hotel sector has experienced a sustained recovery and growth over the past five years, following the pandemic-induced downturn. This resurgence is characterized by a permanent shift towards prioritizing travel and experience-driven consumption. 'There is also now an overlap with the India growth story and the phenomenal rate at which our GDP is growing along with the increase in purchasing power. There were about 70 million-odd households in India a few years ago, which were potentially consuming luxury goods and services. This is expected to triple in the next five years to 200 million households. That's where a huge opportunity lies," he said. Hospitality, traditionally shaped by global consumption trends, has long been central to the luxury goods and services space. Bhatnagar further noted that the country's expanding infrastructure, including the development of new airports and the rising popularity of destinations easily accessible by road from major cities, is significantly contributing to business growth. 'The addressable luxury market is going to increase year on year," he added. While the current number of pure-play inbound international travellers lags, projections indicate a significant increase to 15 million in the coming years, which is expected to substantially boost the business. Leela at present has a near 50-50 split of Indian versus international travellers, which gives it balanced future growth prospects, he added. Earlier, prior to the pandemic, this figure was 65% international travellers versus 35% Indians. The company is reinvesting strategically in its existing hotel portfolio and exploring emerging luxury sub-categories to enhance average daily rates. This includes developing premium offerings such as high-end villas within current properties and establishing exclusive members-only clubs. 'These will all be value drivers that we have built into a system which will play out in the next few years," he said. This will also include its luxury residences which will come up in the next 18 months in Mumbai. Hotels will open in a phased manner till 2028. Schloss Bangalore Ltd earlier this week said it will open its ₹3,500 crore initial public offering on 26 May, making it the largest IPO in the country's hospitality sector to date. The company has scaled down the issue from an earlier ₹5,000 crore plan, citing robust cash flows in recent quarters, and will use the proceeds to fully repay its ₹2,500 crore debt, making it a debt-free business. "We see it as a very positive spin because our primary need of the IPO proceeds was to pay our debt and we had to pay ₹2,500 crore of debt. Our need for capital has gone down. And the size of reduction of the offer for sale (OFS) shows a promoter confidence in the brand and the company," he said. The IPO also comes amid a wave of listings in India's hospitality sector, as rising disposable incomes and a surge in premium travel drive investor interest in hotel chains. The Leela's earnings before interest, taxes, depreciation, and amortization (Ebitda) have grown from ₹600 crore to ₹700 crore from FY24 to FY25. Brookfield had also infused over ₹1,200 crore cash into the business which is sitting on the balance sheet. For the next phase of growth, it will utilize that and the capital on its balance sheets including internal accruals. "We've seen a balance growth across our portfolio and not just from one set of hotels. Food and beverages is a very large part of our business and about 37% comes from it," Bhatnagar added. More than a third, or 35%, of its current inventory of about 1,220 rooms are managed while the remainder are owned. By the end of FY28, the company will have 10 owned hotels, from five now. Along with the listing, Schloss is ramping up expansion with seven new hotels planned over the next three years in cities like Ayodhya, Ranthambore, Gangtok, Srinagar, Bandhavgarh, Agra and Mumbai—targeting demand across spiritual, heritage, wildlife and business travel segments. "The trend of multi-generational travel and spiritual luxury travellers is here to stay. This is where our moat is. The average age of the consumer of luxury is getting younger. Earlier, one associated luxury with a particular age group, but now as we move forward, we find it is getting more democratic and more inclusive," he added. Five of these seven hotels will be owned, while two will be operated through management or franchise agreements, making the company grow from 13 to 20 properties to scale the luxury portfolio in underpenetrated markets. The hotel industry has seen a lot of formalization in the last few yeas, with several players listing themselves while others are still in the process. Prestige Hospitality Ventures Ltd has filed draft papers for a ₹2,700 crore public issue. Ventive Hospitality—a joint venture between Panchshil Realty and Blackstone, filed its preliminary papers with the Sebi in December last year, while Juniper Hotels and Park Hotels last February. Next will be Brigade Hotel Ventures Ltd, which filed its DRHP last December and received approval for a ₹900 crore IPO. Brookfield is a 100% owner of the Leela Hotels. Ankur Gupta, head of Asia Pacific and Middle East for Brookfield's real estate business, said that the company will look to hold about 76% of its ownership post-IPO and will dilute just 24%. Brookfield finalized its $500 million or ₹3,900 crore acquisition of Hotel Leelaventure—the company behind the iconic Leela luxury hotel chain, in 2019.
