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Last day! Leela Hotels IPO ends today; subscription lags at 19%, GMP at 3%
Leela Hotels IPO subscription status: The three-day subscription window to bid for the initial public offering (IPO) of Schloss Bangalore (Leela Hotels IPO) is set to conclude today, May 28, 2025. The public issue, which opened on Monday, May 26, has received a muted response from investors.
The NSE data suggests that the ₹3,500 crore offering of Leela Hotels received bids for 90,54,642 shares, against 4,66,10,169 shares on offer, resulting in a subscription of merely 19 per cent by 11:09 AM on May 27.
Among the investor categories, retail investors led the demand by subscribing the category reserved for them by 48 per cent. This was followed by non-institutional investors (NIIs), who bid for 16 per cent, and qualified institutional buyers (QIBs) for 11 per cent.
Leela Hotels IPO details
Leela Hotels IPO is a fresh issue of 57.5 million equity shares aggregating up to ₹2,500 crore, and an offer for sale (OFS) with promoter Project Ballet Bangalore Holdings divesting 23 million equity shares aggregating up to ₹1,000 crore.
Leela Hotels has set the price band of ₹413–435 per share, and a lot size of 34 shares. A retail investor would require a minimum of ₹14,790 to bid for one lot or 34 shares of Leela Hotels IPO (taking the upper end of the IPO price into consideration). A retail investor can bid for a maximum of 13 lots or 442 shares, amounting to ₹1,92,270.
Leela Hotels IPO grey market premium (GMP)
The unlisted shares of Leela Hotels were commanding a muted premium in the grey market on the last day of its subscription window. Sources tracking unofficial market activities revealed that Leela Hotels shares were seen trading at around ₹447.5 per share, reflecting a grey market premium (GMP) of ₹12.5 or 2.87 per cent over the upper end of the issue price.
Leela Hotels IPO review
The company has received favourable reviews from brokerages for its public offering. Anand Rathi Research Team and Bajaj Broking have recommended subscribing to the issue for a long-term perspective.
Leela Hotels IPO allotment date, listing date
As the subscription window closes today, the basis of allotment of Leela Hotels IPO shares is expected to get finalised on Thursday, May 29, 2025. The successful allottees will receive the company's shares into their demat accounts by tentatively Friday, May 30, 2025.
Leela Hotels shares are slated to list on the BSE and NSE tentatively on Monday, June 2, 2025.
Leela Hotels IPO objective
The company will not receive any proceeds from the OFS component. "The Promoter Selling Shareholder will be entitled to its portion of the proceeds from the OFS, after deducting its proportion of offer-related expenses and applicable taxes,' the company said in its Red Herring Prospectus (RHP).
The company, however, intends to utilise the proceeds from the fresh issue towards funding the repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by the company and certain of its subsidiaries—namely Schloss Chanakya, Schloss Chennai, Schloss Udaipur, and TPRPL—through investment in such subsidiaries. The company will also use the proceeds for general corporate purposes.
Leela Hotels IPO registrar, lead managers
For the public offering, KFin Technologies serves as the registrar. The book-running lead managers for the public issue include JM Financial, BofA Securities India, Morgan Stanley India, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.
About Schloss Bangalore
Schloss Bangalore owns, operates, manages, and develops luxury hotels and resorts under 'The Leela' brand. The company undertakes its business primarily through direct ownership of hotels and hotel management agreements with third-party hotel owners. The company is one of the largest luxury hospitality companies by number of keys in India, comprising 3,553 keys across 13 operational hotels as on March 31, 2025. The company's portfolio includes 5 owned hotels (Owned Portfolio), 7 hotels that are managed by the company through hotel management agreements (Managed Portfolio), and 1 hotel which is owned and operated by a third-party owner under a franchise arrangement with the company. The company has a strategic footprint across 10 key Indian business and leisure destinations, covering 80 per cent of international air traffic and 59 per cent of domestic air traffic in India in FY 2025.
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