Leela Hotels IPO opens for subscription; GMP up 3%; should you subscribe?

As the public offering of Leela Hotels opens for subscription, here are the key details, including issue size, price band, lot size, GMP, reviews, timeline, and other aspects of the Leela Hotels IPO

Leela Hotels IPO opens for subscription: The initial public offering (IPO) of luxury hotels and resorts brand 'The Leela' owner, Schloss Bangalore (Leela Hotels IPO), opens for public subscription today, Monday, May 26. At the upper end, the company seeks to raise ₹3,500 crore from the public offering. Ahead of the opening of the public offering, Leela Hotels successfully raised ₹1,575 crore from anchor investors in a bidding that concluded on Friday, May 23.

As the public offering opens for subscription, here are the key details of the Leela Hotels IPO:  Leela Hotels IPO structure

Leela Hotels IPO 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 has reserved not less than 75 per cent of the net offer for qualified institutional buyers, not more than 10 per cent for retail investors, and not more than 15 per cent for non-institutional investors.

Leela Hotels IPO price band, lot size

The public issue of Leela Hotels 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.

 

A retail investor would require a minimum of ₹14,790 to bid for one lot of Leela Hotels IPO, and a maximum of 13 lots or 442 shares, amounting to ₹1,92,270. 

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Leela Hotel IPO grey market premium (GMP)

The unlisted shares of Leela Hotels were commanding a muted premium in the grey market ahead of the opening of the public issue. Sources tracking unofficial market activities revealed that Leela Hotels shares were seen trading at around ₹448 per share, reflecting a grey market premium (GMP) of ₹13 or 2.99 per cent over the upper end of the issue price.

Leela Hotels IPO timeline

The public offering will remain available for subscription till Wednesday, May 28, 2025. Following that, the basis of allotment is likely to get finalised on Thursday, May 29, 2025. The successful allottees will receive the company's shares in their demat account on Friday, May 30, 2025.

 

Shares of Leela Hotels are set to list on the BSE and NSE on Monday, June 2, 2025.

Leela Hotels IPO objective

The company will not receive any proceeds from the Offer for Sale (OFS). 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, proposes to utilise the proceeds fro 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

KFin Technologies serves as the registrar for the public issue, while the book running lead managers 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.

Should You Subscribe to the Leela Hotels IPO?

Anand Rathi Research Team - Subscribe for long-term

Analysts at Anand Rathi Research Team have recommended subscription to the Leela Hotels IPO for a long-term perspective. At the upper price band, analysts said, the company is valued at P/E of 266.8x, P/S of 11.2x and market cap of ₹14,527.1 crore with EV/EBITDA of 30x post issue of equity shares. "We believe that the IPO is fairly priced and recommend a 'Subscribe - Long term' rating to the IPO," wrote the analysts in a research note.

Bajaj Broking - Subscribe for long-term

Brokerage firm Bajaj Broking in its research note has recommended investors to subscribe to the Leela Hotels IPO for long-term outlook. "The company's negative earnings per share (₹–0.12) and negative net asset value (₹–160.57) make conventional valuation metrics like P/E and RoNW inapplicable or unfavorably skewed," the brokerage said in its report.

 

This, they said, places Schloss at a significant premium compared to listed peers like Indian Hotels and EIH Limited, both of

which show robust profitability and return metrics.

 

"While Schloss does offer a compelling growth narrative in India’s luxury hospitality space—with a unique, asset-light management model and strong brand equity—the current valuation appears to price in much of the future upside. Investors should be cautious, recognising that this IPO is largely a bet on a turnaround and brand-led growth story, rather than a value play based on existing fundamentals," said the brokerage.

About Schloss Bangalore

Schloss Bangalore owns, operates, manages and develops luxury hotels and resorts under 'The Leela' brand. The Leela brand was ranked as #1 among the world’s best hospitality brands in 2020 and 2021, and among the world’s top three hospitality brands in 2023 and 2024, by Travel + Leisure World’s Best Awards Surveys. The company aims to maintain their position as a world-class luxury hospitality brand. As of March 31, 2025, they are one of the largest luxury hospitality companies by number of keys in India, comprising 3,553 keys across 13 operational hotels (collectively, theirPortfolio).    In the financial year 2024-25 (FY25), the company reported consolidated revenue from operations of ₹1,300.5 crore, up 11 per cent from ₹1,171.4 crore in the previous fiscal. Its profit after tax (PAT) stood at ₹49.2 crore in FY25, compared to a loss of ₹2.12 crore in FY24.