Leela Hotels IPO likely to be valued at $2.5 billion, expected within 9 months: Report

The Leela Palaces, Hotels and Resorts is set to pen a significant turnaround with an initial public offer (IPO) that is likely to value the company at $2.5 billion (around ₹21,000 crore), according to a report by Mint.

This is a dramatic shift from the situation five years ago when the company was battling debt and defaults, and its assets were sold to Canadian investor Brookfield in 2019 bankruptcy proceedings for just ₹3,950 crore.

The Mint report said that the company is now planning an IPO likely to be the size of ₹3,150 crore, making it the biggest hospitality sector public issue in India.

Promoter Brookfield plans to sell 15% to the public initially and 10% over the next three years, the report mentioned.

It also added that the Leela Hotels IPO might be launched within the next nine months.

This IPO will exclude The Leela Mumbai, which is promoted by HLV Ltd and is already listed, according to the report.

Promoter Brookfield has reportedly appointed JM Financial and Bank of America to be investment bankers.

“The Leela has not only emerged stronger than ever from its worrisome debts issues but is also seeing steady year-on-year valuations on the back of higher margins,” the report quoted one of the persons familiar with the matter as saying.

Headquartered in Mumbai, The Leela operates 12 properties in major cities and leisure destinations across India. These include the flagship hotel in the capital city of New Delhi, Bengaluru, Chennai, Udaipur, Jaipur, Gurugram, East Delhi, Mumbai, Gandhinagar and now Kovalam and Ashtamudi in Kerala.

The hotel chain has seen a strong turnaround in financials after India’s hospitality sector rebounded post-COVID-19, with a surge in demand for premium experiences.

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