Upcoming IPO: Luxury Hotel Chain Leela Hotels IPO To Open On May 26 – Check Price Band, Lot Size, And GMP

Upcoming IPO: Schloss Bangalore Limited, the owner of India’s prestigious luxury hotel chain The Leela, is all set to launch its Initial Public Offering (IPO). Backed by Brookfield, the company aims to raise funds through a combination of fresh issue and offer for sale.

The total issue size of the Leela Hotels IPO is Rs 3,500 crore. This includes a fresh issue of 5.75 crore shares worth Rs 2,500 crore, and an offer for sale (OFS) of 2.30 crore shares valued at Rs 1,000 crore.

Leela Hotels IPO: Price Band, GMP, Listing Price Estimate

The price band for the IPO has been set between Rs 413 to Rs 435 per share, with the estimated listing price at Rs 453, based on a current Grey Market Premium (GMP) of Rs 18. This implies a possible listing gain of around 4.14%.

At the upper end of this band, the company targets a valuation of around Rs 14,500 crore ($1.7 billion).

Schloss reduced the IPO size by 30% from its original plan due to market conditions, with Brookfield halving its stake sale to Rs 1,000 crore.

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Leela Hotels IPO: Subscription Date

The IPO will be open for public subscription from May 26 to May 28, 2025. Anchor investors will have an early bidding window on May 23, 2025. The allotment of shares is expected to be finalised on May 29, 2025.

Leela Hotels IPO: Lot Size

For retail investors, the minimum application size is 34 shares, requiring an investment of Rs 14,042 at the lower price band. To increase the chances of allotment in case of oversubscription, bidding at the cutoff price is recommended, bringing the investment to Rs 14,790.

The minimum application for small non-institutional investors (sNII) is 14 lots (476 shares), which amounts to Rs 2,07,060. Big non-institutional investors (bNII) must apply for at least 68 lots (2,312 shares), totalling Rs 10,05,720.

Leela Hotels IPO: Listing Date

Leela Hotels shares are expected to be listed on the BSE and NSE on June 2, 2025. Based on the current Grey Market Premium (GMP) of Rs 18, the estimated listing price is Rs 453, indicating a possible listing gain of around 4.14% over the upper price band.

Leela Hotels IPO: Use of Funds

Proceeds from the fresh issue, amounting to Rs 2,500 crore, will be primarily used to repay existing borrowings. This will help the company reduce its debt and improve financial stability, enabling it to focus on long-term growth and operational expansion in the luxury hospitality sector.

Leela Hotels IPO: Company Profile

Established on March 20, 2019, Schloss Bangalore Limited operates under the well-known Leela brand, offering premium hospitality experiences across India.

As of May 31, 2024, the company manages 12 operational hotels with 3,382 keys, including 5 owned properties in prime locations like Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur, totalling 1,216 keys.

These hotels are known for their luxurious offerings, blending traditional Indian architecture with modern elegance. The company also enters into management agreements with third-party hotel owners to expand its footprint across the country.

Leela Hotels IPO: Lead Managers and Registrar

The IPO is managed by a strong consortium of book-running lead managers, including JM Financial, BofA Securities India, Morgan Stanley India, J.P. Morgan India, Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India, IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.

The registrar for the issue is KFin Technologies Limited, which will handle application processing and share allotment.