Schloss Bangalore, owner of luxury hotel chain The Leela, debuted 6.7% lower on NSE amid concerns over valuation, debt, and occupancy rates compared to peers in Karnataka, India.
Schloss Bangalore, the owner of the luxury hotel chain “The Leela,” debuted on India’s National Stock Exchange with a share price drop of 6.7%, valuing the company at approximately 137.97 billion rupees ($1.62 billion). Schloss Bangalore, backed by Brookfield Asset Management (Canada), conducted a $409 million IPO, the second-largest in India in 2025 after Hexaware Technologies.
The shares listed at 406 rupees, below the issue price of 435 rupees, and last traded at 428 rupees. The IPO, oversubscribed nearly five times, was aimed at reducing debt, which stood at 25.68 billion rupees at fiscal year-end 2025—a 32% reduction from the previous year.
Despite strong investor interest, the listing faced pressure due to concerns over rich valuation, significant debt, and lower room occupancy rates compared to competitors. Schloss’s room occupancy for fiscal 2025 was approximately 70%, trailing industry peers Indian Hotels Company Ltd (IHTL.NS) and EIH Associated Hotels (EIHA.NS), which posted occupancy rates of 78% and 79%, respectively. Indian Hotels, owner of the “Taj” brand, is valued at $12.76 billion, while EIH Associated Hotels, parent of “Oberoi,” holds a valuation of $273.3 million.
Market analysts note that operational challenges and debt levels continue to weigh on investor sentiment. Institutional buyers showed strong interest, bidding more than seven times the allotted shares, while retail participation was comparatively low at 83%.
