Leela Hotels IPO GMP: What Grey Market Premium Suggests On Day 2 Of Public Issue - Check Details

The Rs 3,500 crore Initial Public Offering (IPO) of Schloss Bangalore Ltd, which operates the The Leela Palaces, Hotels & Resorts, drew limited investor interest on the second day of bidding. As of midday Tuesday, the IPO had been subscribed just 9%, with retail participation leading the charge, as per market watchers.

Leela Hotels IPO Day 2: Price Band and Capital structure

The price band for the IPO is set at Rs 413 to Rs 435 per share. Investors can apply in lots of 34 shares, translating to a minimum investment of Rs 14,790 at the upper band.

The IPO consists of a fresh issue of Rs 2,500 crore and an offer for sale worth Rs 1,000 crore by the promoter. The funds from the fresh issue will mainly be used to repay outstanding borrowings of around Rs 2,300 crore and for general corporate purposes.  

Also Read: Leela Hotels IPO: Is The Rs 3,500 Crore Public Issue Worth Investing In? Here's What You Should Know | Republic World

Leela Hotels IPO Day 2: GMP

In the unofficial grey market, Leela Hotels shares are trading at a premium of Rs 12.5 over the issue price, implying a potential listing at Rs 448 per share — a modest 3% upside. While this indicates some market confidence, analysts caution against reading too much into grey market trends.

Leela Hotels IPO Day 2:  Response from shareholders

Retail investors had bid for 30% of their allotted quota, while non-institutional investors and qualified institutional buyers had subscribed to 6% and 3% of their respective portions. The offering, which opened on May 26 and will close on May 28, comprises a fresh issue of Rs2,500 crore and an offer for sale worth Rs 1,000 crore.

Ahead of the IPO launch, Schloss Bangalore raised Rs 1,575 crore from a strong line-up of 47 anchor investors. Notable participants included global heavyweights like Goldman Sachs, Fidelity Investments, and Societe Generale.

Leela Hotels IPO: Listing date

The IPO allotment is expected to be finalized by May 29, with shares likely to be credited to successful bidders’ demat accounts by May 30. The stock is scheduled to debut on both the BSE and NSE on Monday, June 2.

Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.