Leela Hotels IPO, operated by Schloss Bangalore Ltd, opened for public subscription on May 26, 2025. Backed by Brookfield, the company aims to raise ₹3,500 crore with a price band of ₹413–435. On Day 1, the IPO was subscribed just 3%, while grey market premium trends indicate a slight listing gain.
Schloss Bangalore Ltd, the company that operates India’s luxury hotel chain The Leela Palaces Hotels and Resorts, opened its Initial Public Offering (IPO) for public subscription today. Backed by Brookfield Asset Management, the IPO aims to raise ₹3,500 crore, comprising a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹1,000 crore by Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.
The price band has been set between ₹413 and ₹435 per share, with a minimum lot size of 34 equity shares. Despite the scale and brand value, the IPO saw only 3% subscription by 12:57 PM on May 26, according to data from the Bombay Stock Exchange (BSE).
Breakdown of Subscriptions:
- Retail investors subscribed 12%
- Non-Institutional Investors (NIIs) subscribed 1%
- Qualified Institutional Buyers (QIBs) are yet to subscribe
The IPO has reserved 75% of shares for QIBs, 15% for NIIs, and 10% for retail investors.
As of May 2024, Schloss Bangalore’s hospitality portfolio includes 3,382 keys across 12 luxury properties spread over 10 major Indian cities, operating under the brands The Leela Palaces, The Leela Hotels, and The Leela Resorts.
Financial Performance & Valuation:
Schloss Bangalore posted impressive growth in operating profit (EBITDA), which surged from ₹87.72 crore in FY22 to ₹600.03 crore in FY24. However, the high Price-to-Earnings (P/E) ratio of 220.8x — against a peer average of 98.9x — has raised caution among investors.
Brokerages remain divided:
- Canara Bank Securities has rated the IPO as “Subscribe with Caution”, citing high valuation but strong growth potential.
- BP Equities recommends a “Subscribe” call, backed by sectoral tailwinds and expansion plans.
GMP Status:
The grey market premium (GMP) for the Leela Hotels IPO stood at ₹13 as of today, hinting at a potential listing price of ₹448 — roughly a 3% gain over the issue price.
Utilization of Funds:
The proceeds will be used for debt repayment of the company and its subsidiaries and for other general corporate purposes.
Lead Managers:
The IPO is managed by a consortium of prominent investment banks including JM Financial, Kotak Mahindra Capital, Axis Capital, Morgan Stanley India, Citigroup Global Markets India, and SBI Capital Markets, among others. Kfin Technologies Limited is the registrar.
As the IPO continues until May 28, investor sentiment and institutional interest in the coming days will determine the overall success of this premium hospitality offering.