Key IPO Details
– Fresh Issue: ₹3,000 crore of new equity shares will be issued.
– Offer for Sale: ₹2,000 crore worth of shares will be sold by Brookfield’s subsidiary.
– Purpose: Proceeds from the fresh issue will be utilized to **reduce the company’s debts** and address general corporate needs. As of March 2024, Leela’s total borrowings were reported to be ₹4,052.50 crore.
Business Growth and Valuation
Leela is targeting a valuation of $2.5 billion (around ₹21,000 crore), signaling a remarkable turnaround from its previous financial struggles. In 2019, the company was acquired by Brookfield Asset Management after facing significant debt issues. Since then, strategic investments and operational improvements have boosted its profitability and market valuation.
Luxury Hotel Portfolio
Leela operates 12 luxury hotels with 3,382 rooms across 10 key locations in India. These hotels are renowned for their luxury services and cater to a high-end clientele. The brand is well-positioned to benefit from India’s growing hospitality sector, which has seen strong post-pandemic recovery due to increased travel and tourism.
Industry Impact
The IPO will solidify Leela’s standing in the competitive hospitality market, offering it the financial resources to expand further and enhance its brand presence. This move reflects the confidence in the Indian luxury hospitality sector, which is seeing increasing demand from both domestic and international travelers.
(Source: Internet)
