The Leela IPO booked 9% on Day 2 so far; GMP at 2.5%. Should you subscribe?
The Leela IPO, valued at Rs 3,500 crore, consists of a fresh issue worth Rs 2,500 crore and an offer for sale (OFS) totalling Rs 1,000 crore. The IPO opened for subscription on May 26 and will close on May 28. Share allotment is expected on May 29, while the company is scheduled to debut on the stock exchanges on June 2.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
The Leela GMP
Here is what brokerage firms have to say about the issue:
SBI Securities
Tired of too many ads?
Remove Ads
Bajaj Broking
Lemonn Markets Desk
The Leela IPO key dates
Continuing to receive a lagging response from the investors, the initial public offering (IPO) of Schloss Bangalore Limited , the operator of The Leela Palaces, Hotels & Resorts, has received only a 9% subscription so far on the second day of the process.The highest subscription was witnessed in the retail investors category, which was booked 30% by 12 PM on Tuesday. Meanwhile, non-institutional investors (NIIs) and qualified institutional buyers (QIBs) had subscribed to their allocation by 6% and 3% respectively.The issue, which opened for public subscription on Monday, was subscribed to by just 6% on the first day.The IPO attracted a subscription of 20% from the retail investors, while the non-institutional investors (NIIs) and qualified institutional buyers (QIBs) subscribed to the issue by 3% each on the first day.Ahead of the launch of its public issue, the company secured Rs 1,575 crore from 47 prominent domestic and global anchor investors, with shares allotted at the upper end of the price band at Rs 435 apiece.Schloss Bangalore Limited allotted over 3.62 crore equity shares to anchor investors, including 1.42 crore shares allocated to nine domestic mutual funds across a total of 20 schemes.Among the top global funds that have invested in the company are Goldman Sachs, Fidelity, and Societe Generale.The Rs 3,500 crore IPO comprises a fresh issue of Rs 2,500 crore and an offer for sale (OFS) valued at Rs 1,000 crore.Schloss Bangalore shares are trading at a grey market premium of 2.5%, or Rs 11-12, in the unlisted market ahead of their D-Street debut.The company is valued at an FY25 EV/EBITDA multiple of 26.3x at post-issue capital of the upper price band. The company's Revenue/EBITDA has grown at a CAGR of 23%/25% respectively over the last 2 years, while on a net basis, the business has turned profitable in FY25.The company's presence in the luxury space offers high growth opportunities as the luxury segment within the hospitality sector is likely to grow at a higher pace. The company will repay its debt from the IPO proceeds, which will result in lower D/E from the current 1.1x and improved profitability.Bajaj Broking recommends subscribing to the issue for the long term.Despite a revenue rise and EBITDA growth to Rs 600 crore in FY24, Schloss posted a net loss of Rs 2.13 crore for the year and an additional Rs 36.4 crore loss in the first two months of FY25.Its negative EPS (Rs –0.12) and net asset value (Rs –160.57) make standard valuation ratios like P/E and RoNW irrelevant or skewed.The company's valuation appears steep compared to profitable peers like Indian Hotels and EIH, despite its strong brand and asset-light model. Investors are advised to approach the IPO with caution, as it is more of a brand-led growth bet than one backed by current fundamentals.Analyst Gaurav Garg of Lemonn Markets Desk said that Schloss Bangalore IPO is a long-term bet on the formalisation and premiumization of India's travel and hospitality sector. Investors with a patient outlook and appetite for high-quality consumption should consider subscribing to the issue.'As the company deleverages and executes its expansion plans, shareholders may be well-positioned to benefit from compounding gains in a high-margin business,' he added.The IPO of Schloss Bangalore Limited (The Leela) opened for subscription on May 26, and will close on May 28. Share allotment is expected on May 29, while the company is scheduled to debut on the stock exchanges on June 2.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
14 minutes ago
- Time of India
Haryana charts green path: Markets with organic produce soon
Gurgaon: The city, along with Hisar, will soon have a dedicated organic produce market. The new initiative will see the city hosting a specialised market focusing on organically produced staples, including wheat, rice and pulses. Hisar will feature a dedicated market for organic fruits and vegetables, creating a comprehensive ecosystem for natural and organic produce in the state. A key highlight of the announcement includes financial assistance of Rs 20,000 per farmer for branding and packaging of natural farming products. The govt will also establish testing laboratories offering free services to farmers to ensure quality control of organic produce. The move aims to encourage more farmers to adopt organic farming methods. The announcement, aimed at promoting sustainable agriculture, came during a World Environment Day programme on Thursday, even as Haryana chief minister Nayab Singh Saini spoke about the state govt's "commitment to eco-friendly farming practices". Saini said, "To ensure fair pricing, a dedicated committee will be formed under the Haryana Farmers' Welfare Authority to determine the rates for natural and organic produce." The scheme is expected to provide organic farmers with direct access to consumers and create a structured marketplace for chemical-free agricultural products. A senior govt official said, "The establishment of these specialised markets is part of govt's broader vision of promoting sustainable agricultural practices and addressing growing consumer demand for organic products." The govt has also introduced measures to support landless farmers. In Kaithal district's Pundri block, 53 acres of agricultural department land will be leased through auction to farmers practising natural farming. Additionally, each village will reserve 10% of panchayat land (or a minimum of one acre) exclusively for natural farming by landless farmers. The govt will also provide financial incentives, including Rs 3,000 per farmer for purchasing storage equipment and a substantial subsidy of Rs 30,000 for native cow purchase, supporting the natural farming ecosystem.
Time of India
14 minutes ago
- Time of India
MP positions itself as hub for wellness & spiritual tourism
Ujjain: Riding on the spiritual appeal of the Mahakaleshwar Jyotirlinga—visited daily by nearly 1 lakh devotees, Madhya Pradesh is stepping up efforts to position itself as a hub for wellness and spiritual tourism, with Ujjain as the focal point of investor interest. Tired of too many ads? go ad free now State govt showcased land banks, polices and investment opportunities in the state to investors. Leading stakeholders held one-on-one discussions with chief minister Mohan Yadav, exploring opportunities worth thousands of crores in tourism and wellness infrastructure at the Wellness and Spiritual Conclave held on Thursday. Highlighting growing interest from national hospitality chains, Mukund Prasad, director at Leisure Hotels Group, said the company is actively expanding into Madhya Pradesh after acquiring land parcels in Kanha and Pench. The group is now exploring Ujjain and Omkareshwar for spiritual and wellness tourism projects. "The state policies are highly supportive and officials are responsive to the needs of promoters. The govt is encouraging investors to combine luxury tourism with wellness, and the group is planning to invest around Rs 200 crore, as wellness development heavily depends on quality infrastructure," said Prasad. Spiritual institutions too have shown keen interest in MP's sacred landscape. Swami Chaitanya Hari, founder of Yoga Nisarga and Vedic Yoga School, said his group is exploring tranquil locations along the Narmada Parikrama and Kshipra river regions to establish wellness centres and ashrams. "These areas offer a spiritually rich and naturally serene environment, ideally suited for holistic healing and yoga-based practices," said Hari. Apart from infrastructure, investors also emphasised the importance of rooting wellness in local culture and resources. Tired of too many ads? go ad free now Shubham Agnihotri, vice chairman of the Taiwan India Ayurveda Association, stressed that Madhya Pradesh's wealth of herbs, tribal wisdom, and nutrition-based biodiversity should be integral to the wellness ecosystem. "Local farmers must be included in the supply chain for sourcing food and herbs, ensuring that wellness tourism is both sustainable and authentic," said Agnihotri. The influx of spiritual tourism has also triggered large-scale interest from the real estate and hotel sector. CREDAI Ujjain president Mahesh Paryani said demand for hospitality infrastructure is growing rapidly. "Around ten major hotel chains have already tied up for projects in the city and are expected to begin operations by the next financial year. These hotels are expected to invest over Rs 3,000 crore," he said.
&w=3840&q=100)
Business Standard
20 minutes ago
- Business Standard
Jaiprakash Associates bids: Jindal Power, Adani Ent, Dalmia in fray
The provisional list of prospective resolution applicants included 26 entities who had submitted their expression of interest in the corporate insolvency resolution process of JAL premium Delhi Listen to This Article Bidders including Adani Enterprises, Jindal Power, Dalmia Cement are likely to submit their resolution plans for beleaguered Jaiprakash Associates Limited (JAL), according to people close to the development. The total claims of creditors in Jaiprakash Associates, currently undergoing a corporate insolvency resolution process amount to over Rs 59,000 crore. The last date of submitting the resolution plan is June 9. The Committee of Creditors of JAL is expected to meet on Friday to discuss whether they should agree to extend the last date for submitting resolution plans, as requested by some of the bidders, sources said. The provisional list of
