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%.

Read the full article here: Despite a Rough Start, Schloss Bangalore’s IPO Shows Long-Term Potential — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

India’s luxury hotel group Schloss Bangalore, which operates The Leela brand, is closing its ₹3,500 crore IPO on May 28. The offering has been subscribed 2.01 times so far, driven largely by QIBs. Backed by Brookfield Asset Management, the company aims to reduce its ₹39 billion debt and expand its portfolio in India’s growing luxury hospitality market.

Schloss Bangalore, the India-based operator of the renowned luxury hospitality chain The Leela Palaces, Hotels and Resorts, concluded its ₹3,500 crore initial public offering (IPO) today. The IPO, open from May 26 to May 28, was subscribed 2.01 times as of 13:39 IST, with strong demand led by Qualified Institutional Buyers (QIBs).

The company, headquartered in Karnataka, India, currently operates 12 high-end properties across 10 locations under three brands: The Leela Palaces, The Leela Hotels, and The Leela Resorts, with a combined total of 3,382 rooms.

Schloss Bangalore priced the IPO between ₹413–₹435 per share, offering a lot size of 34 shares. The offering consists of a fresh issue of ₹2,500 crore and an offer-for-sale (OFS) of ₹1,000 crore by its promoter, Project Ballet Bangalore Holdings (DIFC) Pvt Ltd. The IPO has a QIB allocation of 75%, 15% for non-institutional investors (NIIs), and 10% for retail investors.

As of May 28, the QIB portion was oversubscribed 3.34 times, while retail and NII segments saw 57% and 31% subscription, respectively. On the first two days, the IPO received tepid response with subscription rates at 6% and 17%.

The grey market premium (GMP) stands at ₹4.5, suggesting a modest expected listing price of ₹439.5 per share, just 1.03% above the upper end of the price band. Analysts note the GMP has dropped from a high of ₹20 during the pre-IPO period.

On the financial front, Schloss Bangalore reported EBITDA growth from ₹87.72 crore in FY22 to ₹600.03 crore in FY24. The proceeds from the fresh issue will primarily be used to reduce the company’s ₹39 billion debt, which analysts believe will strengthen its financials and support future growth.

Brokerage firms like Anand Rathi, Geojit Securities, and Indsec Securities have rated the IPO as “Subscribe” for long-term investors, citing strong brand equity, a growing luxury market in India, and reasonable valuations based on EV/EBITDA ratios.

The issue is managed by a consortium of 11 merchant bankers including JM Financial, Kotak Mahindra Capital, Morgan Stanley, and BofA Securities India.

With robust QIB participation and a long-term strategy focused on expansion and deleveraging, Schloss Bangalore’s IPO is seen as a significant move in India’s evolving hospitality and capital markets landscape.

Read the full article here: Act Now: Leela Hotels IPO Subscription Hits Over 2x — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

Leela Hotels IPO is set to open on May 26 with a price band of ₹413 to ₹435 per share. The ₹3,500 crore issue includes a fresh issue and an offer for sale. The IPO allotment is expected on May 29, with listing on June 2. Promoted by Brookfield-backed Schloss Bangalore, the company operates 12 luxury hotel properties. The IPO is trading at a ₹18 premium in the grey market.

Leela Hotels, operated by Brookfield-backed Schloss Bangalore, is set to launch its initial public offering (IPO) from May 26 to May 28, 2025. The company has fixed the IPO price band between ₹413 and ₹435 per equity share. The total issue size has been revised downward to ₹3,500 crore from an earlier plan of ₹5,000 crore.

The IPO comprises a fresh issue of 5.75 crore shares worth ₹2,500 crore and an offer for sale of 2.30 crore shares worth ₹1,000 crore. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with the tentative listing date scheduled for June 2, 2025.

About Leela Hotels

Schloss Bangalore, established in 2019, manages The Leela brand of luxury hotels in India. As of May 2024, it operates 12 properties offering a total of 3,382 rooms under The Leela Palaces, Hotels, and Resorts brand, making it one of the country’s leading luxury hospitality companies by room count.

IPO Allocation and Lot Size

The public issue allocates 75% of shares to qualified institutional buyers (QIBs), including 60% reserved for anchor investors, 15% for non-institutional investors, and 10% for retail investors. The minimum lot size is 34 shares, with retail investors required to invest at least ₹14,042 to participate.

Promoters and Lead Managers

Leela Hotels’ promoters include Project Ballet Bangalore Holdings (DIFC) Pvt Ltd and several other Project Ballet entities. The IPO is managed by a consortium of prominent book-running lead managers, including JM Financial Limited, Bank of America Securities India Limited, Morgan Stanley India, JP Morgan India, Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India, IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.

Grey Market Premium (GMP)

Currently, shares of the Leela Hotels IPO are trading at a premium of ₹18 in the grey market, indicating positive market sentiment ahead of the subscription.

Read the full article here: Leela Hotels IPO: A Majestic Step into India’s Luxury Hospitality Future — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).