Kumar Bahukhandi
Luxury hotel chain Leela Palaces, Hotels and Resorts is preparing to launch its Initial Public Offering ( IPO). The company may soon file a draft paper in other words Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India – 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 in the country’s hotel sector so far. 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 also 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 IPO of Leela Palaces.
