Leela Palaces Hotels IPO: Retail portion booked 20% on Day 1; key things to know about Schloss Bangalore public offer

The IPO, which opened for subscription today, witnessed tepid demand, as the IPO was subscribed to only 6% by end of first day of bidding. The portion set aside for non-institutional investors was booked 3%, while the retail portion was booked 20%. Pie set aside for Qualified institutional buyers (QIBs) was subscribed 3%.

Leela Hotels IPO: Here are key things to know

Leela Hotels price band and lot size

Leela Hotels is selling shares in a price band of ₹413-₹435 per share, and a retail investor can bid for a minimum of one lot of 34 shares up to a maximum of 13 lots. One lot of Leela Hotels shares in the IPO is priced at ₹14,790 at the upper end of the price band.

Schloss Bangalore anchor book

Schloss Bangalore Ltd, which operates Leela Palaces Hotels and Resorts, has garnered ₹1,575 crore from anchor investors, days before its initial share sale opening for public subscription.

The anchor book has received widespread participation from domestic institutional investors, including HDFC Mutual Fund (MF), ICICI Prudential MF, Nippon India MF, Mirae MF, Invesco MF and Aditya Birla Sun Life Insurance Company, according to a circular uploaded on BSE's website on Friday.

Global interest was equally notable, with very strong demand from sovereign and FPIs, including Think Invest, Fidelity, Norges Bank, Whiteoak, Lunate, UC Regents, TT International and Ward Ferry.

Leela Hotels IPO dates

The IPO, which opened on Monday, May 26, will close on Wednesday, May 28. Tentative allotment of shares will happen on May 29, and the stock will be listed on exchanges on June 2.

The company has set aside 75% of shares in the IPO for QIBs, 10% for retail investors and 15% for non-institutional investors.

Schloss Bangalore, which is backed by Brookfield Asset Management, plans to use proceeds of the fresh issue to pay loans availed by the company and its subsidiaries and for general corporate purposes.

As of March 2025, the company had total borrowings of over ₹3,900 crore, the red herring prospectus showed.

Schloss Bangalore Ltd, which owns the luxury hospitality brand 'The Leela' Palaces, Hotels and Resorts, is investing ₹1,131 crore to develop five company-owned hospitality properties, comprising 475 rooms, in Agra, Srinagar, Bandhavgarh, Ranthambore and Ayodhya.

The five owned hotels are expected to commence operations by 2028, according to the company's red herring prospectus (RHP).

Schloss Bangalore financials

The company has seen significant financial growth, with operating profit, or EBITDA, increasing from ₹87.72 crore in FY22 to ₹600.03 crore in FY24.

According to the HVS report, India's hospitality sector is set for strong growth as the country's GDP is expected to nearly double to $7.1 trillion by 2030 from $3.6 trillion in 2023.

The luxury hotel segment, which makes up just 17% of the branded hotel market, is underdeveloped. Further, demand for luxury rooms is projected to grow at a rate of 10.6% annually from FY24 to FY28, while supply will increase only 5.9%, the report noted.

Schloss Bangalore IPO merchant bankers and registrar

The IPO is being managed by a consortium of 11 merchant bankers – JM Financial, BofA Securities India, Morgan Stanley India Company, J.P. Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.