Leela Hotels IPO Fully Subscribed on Day 3, NSE to Settle Disputes with SEBI Ahead of IPO

Entrepreneur

28-05-2025

The initial public offering (IPO) from the operator of Leela Palaces Hotels and Resorts is on its last day and has been subscribed 3.63 times so far, led by qualified institutional buyers (QIBs). The National Stock Exchange of India Ltd (NSE) is said to be offering close to a staggering INR 1,000 crores to settle longstanding disputes with the country's market regulator, Securities and Exchange Board of India (SEBI), in its quest to get publicly listed, according to a report.
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The initial public offering (IPO) from the operator of Leela Palaces Hotels and Resorts is on its last day and has been subscribed 3.63 times so far, led by qualified institutional buyers (QIBs).
The price band for the issue has been set at INR 413-435 per share, with the lot size being 34 equity shares and in multiples of 34 equity shares thereafter. The company has allotted 75 per cent of the shares for QIBs, 15 per cent for 15 per cent for non-institutional investors (NII), and 10 per cent reserved for retail investors.
According to BSE data, the listing has been subscribed 3.63 times on day 3 of subscription. The IPO received bids for 16,93,98,676 shares against 4,66,10,169 shares on offer as on 3 PM IST.
The portion for retail investors has received 63 per cent subscription, while NII investors subscribed 49 per cent to the issue. The QIB portion, however, has been booked 6.21 times.
Schloss Bangalore is known for its premium segment offering in the hospitality industry under 'The Leela' brand and currently operates 3,382 rooms across 12 properties. Schloss also raised INR 1,575 crores from its anchor investors.
In FY24, the hospitality company recorded positive growth, with its EBITDA at INR 600.03 crore, up from INR 87.72 crore in FY22.
Aditya Birla Money Ltd., in its pre-IPO note, gave a 'Subscribe' rating to the listing, citing that the company is "The largest hotel player in the luxury segment, having a strong global appeal."
The IPO note also said that Schloss Bangalore also has a 'strong track record in driving operational efficiency backed by a strong promoter and is promoted by PE funds which are managed and/or advised by affiliates of Brookfield, one of the world's largest alternative asset managers and investors with over USD 1 trillion n of AUM as of FY25, across various asset classes. The company also has a track record of delivering superior EBITDA margins and increased RevPAR for its owned portfolio, driven by operational efficiencies, said Aditya Birla.
NSE-SEBI Work to Resolve Issues
The National Stock Exchange of India Ltd (NSE) is said to be offering close to a staggering INR 1,000 crores to settle longstanding disputes with the country's market regulator, Securities and Exchange Board of India (SEBI), in its quest to get publicly listed, according to a report.
SEBI will mull over the offer, with a decision expected soon, said the report, citing people familiar with the matter who shall remain confidential.
NSE also paid close to INR 640 crores previously to SEBI to settle a case that involved alleged unfair access to its trading platform.
NSE's CEO, Ashish Kumar Chauha, had also told market analysts and investors that the regulator had identified four areas and legal cases needing a resolution. SEBI's newly appointed Chairman Tuhin Kanta Pandey also hinted recently that it is working closely with NSE to resolve issues surrounding its IPO plans.
NSE's valuation has also reached USD 58 billion, in anticipation of its potential listing, according to a TOI report citing market experts. At the USD 68 billion mark, the country's largest equity-derivatives exchange will surpass Nasdaq's valuation and inch closer to Deutsche Boerse AG's USD 62 billion valuation, according to Bloomberg.