India’s Leela hotels owner Schloss slashes IPO size by 30%

Schloss Bangalore, the owner of Leela luxury hotels, has slashed its IPO size by 30% to 35 billion rupees ($409 million), joining a growing list of companies that have trimmed their issues due to market uncertainty.

Brookfield-backed Schloss, which initially planned a 50 billion-rupee initial public offering, will run the issue from May 26-28, its updated prospectus showed on Tuesday. Large “anchor” investors will get to bid on May 23.

Several companies seeking to tap the Indian capital market this year have either delayed their IPOs or downsized their issues as the domestic market faced turbulence due to global trade worries and a domestic border conflict.

India’s blue-chip Nifty 50 has rebounded in recent weeks and is up 4% for the year, after the country held a ceasefire with Pakistan and as some trade tensions eased. The index is still 6% off record highs it hit last September.

Schloss did not specify in its prospectus why it had cut the IPO size.

The company’s IPO is still India’s second-largest public float so far in 2025, where proceeds are down about 5% from a year before, according to LSEG data from May 6.

Last month, Hero MotoCorp-backed e-scooter maker Ather Energy slashed its valuation by 44%, with its existing investors offloading only half the number of shares they initially planned to sell.

Education loan provider Avanse Financial Services, contract drug maker Anthem Biosciences and South Korean conglomerate LG Electronics’ India unit have also put IPO plans on hold.

Schloss will sell fresh shares worth 25 billion rupees, down from an initially planned 30 billion rupees, while Brookfield plans to sell shares worth 10 billion rupees - half of its original plan.

The company, which runs 13 hotels, will use proceeds from the sale of new shares to repay its borrowings.