Schloss Bangalore, India’s luxury hotel operator behind The Leela brand, is set to list its IPO on June 2, 2025. The IPO saw a strong subscription of 4.50 times with a slight premium in the grey market. Experts recommend a long-term hold given the growing luxury hospitality sector in India.
Schloss Bangalore, a prominent luxury hotel management company in India, is preparing for the initial public offering (IPO) listing of its subsidiary, Leela Hotels, on June 2, 2025. Schloss Bangalore operates the prestigious Leela Palaces, Hotels, and Resorts brand, managing 3,382 rooms across 12 hotels in 10 cities nationwide.
The Leela Hotels IPO received a subscription of 4.50 times by the close of bidding on May 29, 2025. Qualified Institutional Buyers (QIBs) showed strong interest, subscribing 7.46 times, while the non-institutional investor portion was subscribed 1.02 times. Retail investors subscribed at 83%, reflecting a cautious but positive investor sentiment.
Priced in the band of ₹413-435 per share, the IPO offered shares in lots of 34. The allocation was divided with 75% for QIBs, 15% for non-institutional investors (NIIs), and 10% reserved for retail individual investors (RIIs).
Leela Hotels’ parent company Schloss Bangalore, backed by global investor Brookfield Asset Management, raised ₹1,575 crore from anchor investors. The IPO raised a total of ₹3,500 crore, including a fresh equity issue of ₹2,500 crore and an offer for sale (OFS) of ₹1,000 crore by its promoter.
Financially, the company has shown substantial growth, with EBITDA increasing from ₹87.72 crore in FY22 to ₹600.03 crore in FY24. The funds raised will be used primarily to repay loans and support general corporate activities.
On May 30, 2025, the grey market premium (GMP) for Leela Hotels IPO was reported at ₹3, indicating a small premium over the upper IPO price band, suggesting an estimated listing price of ₹438 per share.
The IPO listing is overseen by a consortium of 11 leading merchant bankers, including JM Financial, Morgan Stanley India, Kotak Mahindra Capital, and SBI Capital Markets, among others.
