Leela Hotels iPo: Here are 10 Key Risk from Rhp for Investors to Consider Before Subscribing to the issue

Leela Hotels IPO: Schloss Bangalore Limited IPO or Leela Hotels IPO Opens on 26 May 2025 for Subscription by Investors. Here are 10 Key Risk from Red Herring Prospectus or Rhp for Investors to Consider Before SUBSCRIBING To the issue, Check Details

Schloss Bangalore Ltd IPO or Leela Hotels IPO- 10 Key Risks from Rhp

1. As per the risks specified in the rhp, any deterioration in the quality or reputation of company’s “The Leela” Brand Brand Brand must have an adverse effect on its business, Financial Conditions and Operation.

2.A Significant Port of Our Total Income is derived from the five hotels Owned by Leela Hotels (aggregating to 93.46%, 93.77% and 91.13% of its total income for the Financial Year 2024, Financial Year 2024 And Financial Year 2023, Respectively) And any adverse development

3. Leela Hotels and Certain of its material subsidiaies have incurred losses in the past during financial years 2024 and 2023 (21.27) Million for the Financial Year 2024 and (616.79) Million for the Financial Year 2023 (on a Consolidated and Rested Basis), as well as during financial year 2025 for three of our material subsidiaies, and May Experience Losses in the futures Which count result in an adverse effect on our business, cash flows and financial condition.

4. Leela Hotels and Certain of its Material subsidiaies have had had negative net cash flows in the past and may continue to have negative cash flows in the future, Which COLD AFIVERSELI AFERSELY AFEVERSELE AFEVECT RESTES Operations and Financial Condition

5. The Hotel Company has granted security interes on its assets, and any failure to satisfy its obligations under its own its second borrowings ( 39,087.46million as of Financial Year 2025) Cold Lead to Invocation of Security Interest, Resulting in a Forced Sale or Seizure of Such Assets.

6. Company and certain of its material subsidiaies have had a negative net worth in the past ( (28,257.23) Million as at March 31, 2024, and (25,119.63) Million as at March 31, 2023, on a Consolidated and Restored Basis) And May Experience Negative Net Wort In the FUTUTURE SATURET NH Financial condition and results of operations.

7. It has substantial indebtedness which requires Significant Cash Flows to Service and Limits Its Ability to Operate Freely. As of March 31, 2025, it had outstanding borrowings of 39,087.46 Million on a restated and consolidated Basis. Further, its finance costs as a percent income for the financial year 2025 amounted to 32.57%. In addition, it may require additional finalism in the future in order to contineue to grow its business, which may not be available on accessible terms, or at all

8. The company is exposed to risks associateed with the renovation and refurbishment of existing hotels. Delays in the renovation and refurbition of existing hotels in its portfolio may have an adverse effect on its business, financial condition and results of operations.

9. The company is exposed to risks associateed with the connection of new hotels, including the leela ayodhya, the leela palace agra, the leela palaca ranthambore, the leela palace srinagar and the leela bandhavgarh. Delays in the Construction of New Hotels May have an adverse effect on its business, financial condition and results of operations.

10. The determination of the price band is based on various facts and assumptions and the offer price of the right shares, market capitalization and price to earnings ratio based on the operation of the equipment of the Equity Shares, May Not be indicative of the market price of the company on listing or thereafter and, as a result, investors may lose a significant part or all of all of their investment.

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