Leela Palaces will bring the biggest IPO in the hotel segment: The company plans to raise ₹ 5,000 crores through public issue, will soon file draft papers with SEBI

Luxury hotel chain Leela Palaces, Hotels and Resorts is preparing to launch its Initial Public Offering i.e. IPO. The company may soon file draft papers i.e. Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India i.e. SEBI for the IPO.

According to media reports, the company is planning to raise Rs 5,000 crore from the public issue. With this size, it will be the largest IPO ever in the country’s hotel sector. Leela Palaces was started in the year 1986 by CP Krishnan Nair. Currently, it is owned by Brookfield Asset Management.

New shares worth Rs 3,000 crore will be issued in the IPO of Leela Palaces

According to reports, this is a mega issue for the hospitality sector and the company may soon file draft papers with SEBI. New shares worth Rs 3,000 crore will be issued in the IPO. This money will be used for growth capital. Along with this, there will be an offer for sale of Rs 2,000 crore. Under this, promoter Brookfield wants to reduce its stake.

11 investment banks including Kotak Mahindra Capital, JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Axis Capital, Citi, ICICI Securities, IIFL Capital, Motilal Oswal and SBI Caps are the book-running lead managers for the Leela Palaces IPO.

Leela Palaces was started in the year 1986 by CP Krishnan Nair.

In 2019, Brookfield bought 4 properties of Leela Palaces

In March 2019, Canada’s Brookfield bought 4 properties of Leela Palaces in Delhi, Bengaluru, Udaipur and Chennai from JM Financial Asset Reconstruction Company for Rs 3,950 crore. Leela Mumbai will not be included in the IPO. It is already listed on the stock market as Hotel Leela Venture Limited (HLV).

In an interview given in May this year, Ankur Gupta, Asia Pacific and Middle East Head of Brookfield’s Real Estate Group, said that Leela Palaces has planned about 20 properties across India. The company’s journey started with 8 hotels, which has now increased to 15.