Leela Hotels IPO Day 2 update: Check latest subscription status, GMP, more

Leela Hotels IPO has received bids for 43,30,954 shares against an offer of 4,66,10,169 shares, resulting in a subscription of merely 8 per cent

Leela Hotels IPO Subscription Status: The initial public offering (IPO) of Schloss Bangalore (Leela Hotels IPO), which opened for public subscription 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 43,30,954 shares, against 4,66,10,169 shares on offer, resulting in a subscription of merely 9 per cent as of 12:50 PM on Tuesday, May 27.

 

Among the investor categories, retail investors led the demand by subscribing the category reserved for them by 32 per cent. This was followed by Non-Institutional Investors (NIIs), who bid for 6 per cent, and Qualified Institutional Buyers (QIBs) for 3 per cent.

Leela Hotels IPO details

The public offering is a book-built issue, which comprises a fresh issue of 57.5 million equity shares, and an offer for sale (OFS) with promoter Project Ballet Bangalore Holdings offloading 23 million equity shares.

 

Leela Hotels IPO is available at a price band of ₹413-435 per share, and a lot size of 34 shares. Thus, investors can bid for a minimum of 34 shares of Leela Hotels IPO and in multiples thereof.

 

To bid for one lot or 34 shares of Leela Hotels IPO, a retail investor would require a minimum of ₹14,790, 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 second 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 the brokerages. Anand Rathi Research Team, and Bajaj Broking have recommended subscribing to the issue for a long-term perspective. READ MORE

 

Leela Hotels IPO allotment date, listing date

The three-day subscription window to bid for the public offering is set to conclude on Wednesday, May 28, 2025. Following the closure of the subscription window, the basis of allotment of Leela Hotels IPO shares is likely to get finalised on Thursday, May 29, 2025, with shares getting credited into demat accounts by Friday, May 30, 2025.

 

Shares of Leela Hotels are set to make their D-Street debut on Monday, June 2, 2025, by listing on the BSE and NSE. 

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. 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 are the book running lead managers.

About Schloss Bangalore

Schloss Bangalore owns, operates, manages and develops luxury hotels and resorts under “The Leela” brand. As of March 31, 2025, the company is one of the largest luxury hospitality companies by number of keys in India (Source: HVS Report), comprising 3,553 keys across 13 operational hotels (collectively, our “Portfolio”). The company's portfolio includes The Leela Palaces, The Leela Hotels and The Leela Resorts. The company undertakes its business primarily through direct ownership of hotels and hotel management agreements with third-party hotel owners. The company’s portfolio includes five owned hotels (“Owned Portfolio”), seven hotels that are managed pursuant to hotel management agreements (our “Managed Portfolio”) and one hotel which is owned and operated by a third-party owner under a franchise arrangement with the company.