The Leela Palaces, Hotels, and Resorts aims for a valuation of at least $2.5 billion (around Rs 21,000 crore) in its upcoming initial public offering (IPO), marking a significant turnaround from its debt and default issues five years ago, according to Mint.
The IPO is expected to raise approximately Rs 3,150 crore, potentially becoming the largest IPO in India’s hospitality sector. Brookfield, the promoter, has engaged JM Financial and Bank of America as investment bankers. The Canadian investor plans to initially sell 15 percent of its stake to the public, with an additional 10 percent to be sold over the next three years.
In 2019, Brookfield acquired the luxury hotel chain’s assets during bankruptcy proceedings for Rs 3,950 crore. However, Moneycontrol has not independently verified this report.
Despite initial challenges, The Leela has emerged stronger, experiencing consistent year-on-year valuation increases due to higher margins. A source familiar with the situation highlighted the company’s steady improvement.
A Bank of America spokesperson declined to comment, and queries to JM Financial, The Leela, and Brookfield were unanswered. The IPO will not include The Leela Mumbai, which is promoted by HLV Limited and is already listed.
In June 2016, The Leela Palaces, Hotels, and Resorts was ranked as the fifth-best hotel brand globally by Travel + Leisure readers in the USA’s 2016 World’s Best Awards Survey. The Leela Palace New Delhi, the group’s flagship hotel, was voted one of the top three city hotels in Asia.
