Schloss Bangalore, the owner and operator of The Leela brand of luxury hotels, has kicked off its IPO journey on a strong footing, raising INR 1,575 crore from a high-profile list of 47 anchor investors. The anchor round, concluded on 23 May 2025, saw a remarkable show of confidence from both domestic mutual funds and marquee global institutional investors. This placement precedes the company’s much-anticipated INR 3,500 crore IPO, set to open on 26 May 2025.
Scloss Bangalore anchor round stands out not only for the quantum of capital raised but also for the caliber and diversity of investors—ranging from Indian mutual funds and insurance firms to sovereign wealth funds, endowments, and some of the world’s most active foreign portfolio investors (FPIs).
Schloss Bangalore IPO Snapshot
Schloss Bangalore IPO is split into two major components:
- Fresh Issue: INR 2,500 crore via issue of 5.75 crore new equity shares
- Offer for Sale (OFS): INR 1,000 crore by Project Ballet Bangalore Holdings (DIFC), the Brookfield-managed promoter
- Price Band: INR 413–435 per share
- Lot Size: 34 shares per lot
- Retail Investment Minimum: INR 14,042 for one lot
- Listing: BSE and NSE on 2 June 2025
- IPO Window: Opens on 26 May, Closes on 28 May
- Allotment Date: Expected on 29 May
Schloss Bangalore Anchor Allocation: INR 1,575 Cr from 47 Funds
At the upper price band of INR 435, the company allotted 3,62,06,896 equity shares to 47 institutional investors on 23 May, effectively locking in INR 1,574.99 crore.
Domestic Mutual Funds Lead the Charge
Some of India’s most active fund houses anchored the deal, including:
- HDFC Mutual Fund, with over 3.1 million shares across four schemes
- ICICI Prudential MF, with major allocations to ELSS and hybrid funds
- Nippon India MF, whose Small Cap Fund alone subscribed INR 125 crore worth of shares
- Invesco, Mirae Asset, and Aditya Birla Sun Life Insurance also featured prominently
Sovereign Wealth and Foreign Institutions Show Deep Conviction
Among global participants were sovereign funds and institutional giants such as:
- Government Pension Fund Global (Norges Bank)
- Fidelity Investment Trust – Emerging Asia
- University of California Regents
- ThinkIndia Opportunities Fund LP
- Ashoka WhiteOak
- Carmignac Portfolio
- Goldman Sachs (Singapore) and CLSA Global Markets Pte
Notably, some investors—such as Nippon India Small Cap Fund and ThinkIndia Opportunities Fund—each received more than INR 125 crore worth of shares, indicating their long-term conviction in the luxury hospitality business.
Full List of Anchor Investors in Schloss Bangalore
| No. | Name of Anchor Investor | Shares Allotted | % of Anchor Book | Investment Amount (INR Cr) |
|---|---|---|---|---|
| 1 | HDFC MF – Multi Cap Fund | 12,20,204 | 3.37% | 53.08 |
| 2 | HDFC MF – Non-Cyclical Consumer Fund | 6,88,874 | 1.90% | 29.97 |
| 3 | HDFC MF – Children’s Fund | 5,90,442 | 1.63% | 25.68 |
| 4 | HDFC MF – Business Cycle Fund | 373,405 | 1.03% | 16.27 |
| 5 | ICICI Prudential ELSS Tax Saver Fund | 6,25,010 | 1.73% | 27.20 |
| 6 | ICICI Prudential Equity & Debt Fund | 6,24,995 | 1.73% | 27.20 |
| 7 | Nippon India Small Cap Fund | 28,73,578 | 7.94% | 125.00 |
| 8 | ThinkIndia Opportunities Master Fund LP | 28,73,578 | 7.94% | 125.00 |
| 9 | Ashoka WhiteOak India Opportunities Fund | 17,70,064 | 4.89% | 77.08 |
| 10 | Emerging Markets Fund – TT International | 2,98,850 | 0.83% | 13.00 |
| 11 | WhiteOak Capital Flexi Cap Fund | 3,86,716 | 1.07% | 16.82 |
| 12 | WhiteOak Capital Mid Cap Fund | 2,43,897 | 0.67% | 10.60 |
| 13 | WhiteOak Capital Multi Cap Fund | 1,44,274 | 0.40% | 6.28 |
| 14 | WhiteOak Capital ELSS Tax Saver Fund | 29,590 | 0.08% | 1.29 |
| 15 | 360 ONE Special Opportunities Fund – Series 2 | 4,59,782 | 1.27% | 20.00 |
| 16 | 360 ONE Special Opportunities Fund – Series 10 | 4,59,782 | 1.27% | 20.00 |
| 17 | 360 ONE Private Equity Fund – Series 2 | 2,29,908 | 0.63% | 10.00 |
| 18 | LSP Investment Pvt Ltd (LSPI1SPVLTD) | 22,98,876 | 6.35% | 100.00 |
| 19 | Invesco India Smallcap Fund | 14,94,266 | 4.13% | 65.00 |
| 20 | WF Asian Reconnaissance Fund Ltd | 14,94,266 | 4.13% | 65.00 |
| 21 | Government Pension Fund Global (Norges) | 14,94,266 | 4.13% | 65.00 |
| 22 | Axis Max Life ULIF Growth Super Fund | 14,94,266 | 4.13% | 65.00 |
| 23 | Baroda BNP Paribas Small Cap Fund | 2,98,521 | 0.82% | 12.70 |
| 24 | Baroda BNP Paribas Consumption Fund | 2,73,426 | 0.75% | 11.88 |
| 25 | Baroda BNP Paribas Aggressive Hybrid Fund | 2,06,566 | 0.57% | 8.99 |
| 26 | Baroda BNP Paribas Multi Asset Fund | 2,06,566 | 0.57% | 8.99 |
| 27 | Baroda BNP Paribas Business Cycle Fund | 1,66,585 | 0.46% | 7.25 |
| 28 | Regents of the University of California | 9,19,564 | 2.54% | 40.00 |
| 29 | IIFL Asset Management Limited | 9,19,568 | 2.54% | 40.00 |
| 30 | Carmignac Portfolio | 9,19,564 | 2.54% | 40.00 |
| 31 | CLSA Global Markets Pte Ltd – ODI | 9,19,568 | 2.54% | 40.00 |
| 32 | Aditya Birla Sun Life Insurance Company | 9,19,560 | 2.54% | 40.00 |
| 33 | JM Financial Mutual Fund – Flexicap | 9,19,566 | 2.54% | 40.00 |
| 34 | Mirae Asset Great Consumer Fund | 6,89,656 | 1.90% | 30.00 |
| 35 | Eastspring Asia Opportunities Equity Fund | 6,89,656 | 1.90% | 30.00 |
| 36 | Motilal Oswal Large Cap Fund | 5,74,736 | 1.59% | 25.00 |
| 37 | SBI General Insurance Co. Ltd | 2,29,908 | 0.63% | 10.00 |
| 38 | Citigroup Global Markets Mauritius | 2,29,908 | 0.63% | 10.00 |
| 39 | Societe Generale – ODI | 8,04,460 | 2.22% | 34.99 |
| 40 | Copthall Mauritius Investment Ltd – ODI | 4,21,430 | 1.16% | 18.33 |
| 41 | Integrated Core Strategies (Asia) Pte Ltd | 2,29,908 | 0.63% | 10.00 |
| 42 | Goldman Sachs (Singapore) Pte – ODI | 2,29,908 | 0.63% | 10.00 |
| 43 | Fidelity Investment Trust – Emerging Asia | 2,29,908 | 0.63% | 10.00 |
| 44 | TOCU Europe I SARL | 3,83,034 | 1.06% | 16.66 |
| 45 | Hudson Bay Master Fund Ltd | 1,91,517 | 0.53% | 8.33 |
| 46 | Viridian Asia Opportunities Master Fund | 1,91,517 | 0.53% | 8.33 |
| 47 | Morgan Stanley Asia (Singapore) Pte | 1,91,512 | 0.53% | 8.33 |
Use of Funds: Deleveraging and Strategic Growth
From the INR 2,500 crore raised via the fresh issue:
- INR 2,300 crore will be used to repay debt.
- The rest will be allocated for general corporate purposes.
As per its Red Herring Prospectus, Schloss Bangalore had borrowings of over INR 3,900 crore as of March 2025. The deleveraging move positions the company for better financial health ahead of its ambitious expansion strategy.
Business Fundamentals
Schloss Bangalore operates the Leela Palaces, Hotels, and Resorts — among the most recognized luxury hotel chains in India. The company has:
- 12 operational hotels across 10 cities
- 3,382 keys in its portfolio
- A mix of 5 owned, 6 managed, and 1 franchised hotel
Upcoming Expansion
The company’s pipeline includes:
- Palaces in Agra and Srinagar
- Wildlife resorts in Ranthambore and Bandhavgarh
- Urban hotel in Hyderabad
- Serviced apartments near Mumbai Airport
This planned expansion adds 833 keys (a 24.63% increase) and signals Schloss’s foray into wildlife, spiritual, and heritage tourism — a growing segment of the Indian and inbound luxury travel market.
Market Outlook: A Premium Listing Expected
The strength of the anchor book, with participation from globally respected names, lays the foundation for a likely oversubscription in the main IPO. Given the company’s brand strength, sectoral leadership, improving financials, and deleveraging roadmap, Schloss Bangalore is widely expected to witness a strong debut on 2 June 2025.
Final Take
Schloss Bangalore anchor round is not just a capital-raising exercise—it is an endorsement. It validates Schloss Bangalore’s luxury positioning, operational strategy, and financial roadmap. For retail investors and market participants, this signals both credibility and upside potential.
Whether Schloss Bangalore can translate its brand equity into sustained shareholder value will depend on execution. But with a pristine balance sheet post-IPO and expansion-ready capital, it now stands on a strong launchpad.