02-06-2025
Leela Hotels debuts at 6% discount, ends 7% higher at ₹435.55
Shloss Bangalore IPO ended 7.15 per cent higher on the BSE at INR 435.55 against the initial listing price of INR 506.50, a discount of 6 per cent on the issue price of INR 435.
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Shloss Bangalore IPO ended 7.15 per cent higher on the BSE at INR 435.55 against the initial listing price of INR 506.50, a discount of 6 per cent on the issue price of INR 435.
Brookfield Asset Management-owned Schloss, which operates 'The Leela' brand in the luxury segment in India, made what is described can be described as a 'subdued' debut on the stock exchanges.
On the NSE, the stock was listed at INR 406, whereas in BSE it was listed at INR 406.50, less then the issue price of INR 435.
The price band for the issue was 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.
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.
Priyanka Madnani, Founder & CEO of Terex Ventures, said that even with a strong brand like The Leela, Schloss Bangalore's listing at a 7 per cent discount shows that investors are becoming more careful.
"Today, people don't just invest because of a big name, they want solid numbers, future growth, and clear returns. Hospitality is still seen as a seasonal play, and unless companies clearly show steady income and long-term value, investors will stay cautious. This is a reminder for all upcoming IPOs: a famous brand helps, but performance, transparency, and investor trust matter much more in today's market.
Madnani added that the IPO, despite attracting decent interest, the weak listing was caused by a broader market dip and global worries.
The issue was subscribed 4.5 times, despite possessing strong brand value, due to a cautious investor sentiment. In FY24, the hospitality company recorded positive growth, with its EBITDA at INR 600.03 crore, up from INR 87.72 crore in FY22. Market analysts also noted that the selling intensified due to foreign investors withdrawing funds.
Aditya Birla Money Ltd, 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
Key institutions behind the listing include Investment bankers such as JM Financial, Morgan Stanley, BofA Securities, Kotak, Axis Capital, Citi, and SBI Caps. KFin Technologies was the registrar for the issue.
