Leela Palaces, Hotels & Resorts is poised to file draft papers for an ambitious ₹5,000 crore IPO, set to become the largest ever in India’s hotel industry. This strategic move comes as the luxury hospitality chain seeks to bolster its growth and expansion plans.
IPO will feature a primary component of ₹3,000 crore aimed at funding growth initiatives, while the secondary component of ₹2,000 crore will involve promoter Brookfield’s stake dilution. The filing with the Securities and Exchange Board of India (Sebi) is expected soon.
To facilitate the share sale, Leela has enlisted the expertise of 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.
As of now, there has been no immediate comment from Brookfield Asset Management or the investment banks involved. Updates will be provided once further information is available.
In March 2019, Brookfield, based in Toronto, acquired four of Leela’s premier properties in Delhi, Bangalore, Udaipur, and Chennai for ₹3,950 crore from JM Financial Asset Reconstruction Co. Since then, the Canadian firm has successfully revitalized the brand. Notably, the upcoming IPO will not encompass Leela Mumbai, which is already publicly traded under Hotel LeelaVenture Ltd (HLV).
Ankur Gupta, Head of Asia Pacific and Middle East for Brookfield’s Real Estate Group, previously remarked that their investment in Leela was not merely a real estate gamble but a calculated move to enhance a luxury brand with substantial operational turnaround potential. Currently, Leela aims to expand its portfolio to nearly 20 properties across India, up from eight when the journey began, with the count now standing at 15.
In a related development, Ventive Hospitality—a joint venture between Pune-based Panchshil Realty and global investment firm Blackstone—has also filed its draft IPO documents to raise ₹2,000 crore, signaling further momentum in the luxury hospitality sector.
