Schloss Bangalore Limited

Schloss Bangalore Limited owns, operates, manages and develops luxury hotels and resorts under 'The Leela' brand. The Leela brand and properties have won over 250 awards since January 2021.  As of March 31, 2025, they are one of the largest luxury hospitality companies by number of keys in India, comprising 3,553 keys across 13 operational hotels. The Portfolio includes The Leela Palaces, The Leela Hotels and The Leela Resorts. They undertake the business primarily through direct ownership of hotels and hotel management agreements with third-party hotel owners. Their Portfolio includes five owned hotels, seven hotels that are managed by them pursuant to hotel management agreements and one hotel which is owned and operated by a third-party owner under a franchise arrangement with them. They account for nearly 18% of the total existing luxury keys across these markets that they are present in as of December 31, 2024. Company plans to expand the Portfolio with seven new hotels, aggregating approximately 678 keys or 19.08% of existing keys through 2028 that will be either developed, owned or managed by them. Their growth pipeline comprises of modern palaces, hotels and resorts including expansion in new segments such as wildlife, spiritual and heritage tourism, diversifying the geographical footprint across additional cities and tourist destinations. This includes a modern palace hotels in Agra (Uttar Pradesh) and Srinagar (Union Territory of Jammu and Kashmir), resorts in Ranthambore (Rajasthan) and Bandhavgarh (Madhya Pradesh) and serviced apartments in Mumbai’s (Maharashtra) international airport district.  As per financial performance, Schloss Bangalore Limited has posted total income / net profits of Rs 903.27 Cr / (60.13) Cr (FY23), Rs 1,226.50 Cr / Rs (4.06) Cr (FY24) and Rs 1,406.56 Cr / 49.27 Cr (FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 0.36 and average RoNW of 1.32% for last three fiscals. Issue is priced at a P/BV of 2.92 as per NAV of Rs 148.88/- as on 31.03.25. If we attribute latest earnings of FY23, FY24, TTM and annualised FY25 on equity post issue, then asking price is at a P/E of around NA, NA and 294.86 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, eleven lead managers JM Financial Limited, BofA Securities India Limited, Morgan Stanley India Company Private Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, IIFL Capital Services Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited are associated with this IPO, and have handled 274 IPOs in last three fiscals.  ( As on 21.05.25 ) As per financials, Aegis Vopak Terminals Limited has shown good growth, RoNW is 7.51% and P/E is NA, 308.95, 192.73 and 233.47 respectively as per FY23, FY24, TTM and annualised FY25 earnings. So issue looks aggressively priced when compared with peers. Company is the largest Indian third-party owner and operator of tank storage terminals for liquified petroleum gas ('LPG') and liquid products in terms of storage capacity, as of 31.12.24. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

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