IPO GMP | Keep your money ready, another company is bringing IPO, there will be a storm in the grey market – Hindi News
IPO GMP | Another company is all set to try its luck in the IPO market. The name of the company is Schloss Bangalore. The company operates palaces, hotels and resorts under the Leela brand. The company has submitted preliminary documents with SEBI to raise Rs 5,000 crore through IPO. ( The Leela Palace IPO Company Extract )
According to the draft red herring prospectus, the company aims to raise Rs 3,000 crore through a fresh issue and Rs 2,000 crore through an offer-for-sale. Promoter Project Ballet Bangalore Holdings is the selling shareholder in the offer-for-sale. The luxury hospitality chain may consider a pre-IPO placement of Rs 600 crore before launching a public issue. Schloss Bangalore's stock exchange listing will put the company in competition with competitors such as Indian Hotels, EIH, Chalet Hotels and Juniper Hotels. From the IPO proceeds, the company will pay Rs 2,700 crore to repay its debt and that of its subsidiaries. As of May 2024, the company's consolidated debt stood at Rs 4,052.5 crore. The remaining funds from the IPO will be used for general corporate purposes, while the proceeds from the offer for sale will go to the company's promoter. The company's financial performance has improved over the years. The company had posted a loss of ₹2.1 crore in FY24. Which is lower than ₹61.7 crore in FY23 and ₹319.8 crore in FY22. However, the loss in the first two months of FY25 was ₹36.4 crore.
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