Leela Palaces Hotels IPO: Schloss Bangalore's offer continues to see tepid demand; retail portion booked 41% on Day 2; check details

As of 5 PM, the ₹3,500-crore initial share sale received bids for 77,01,408 shares against 4,66,10,169 shares on offer, as per BSE data.

The category for Retail Individual Investors (RIIs) fetched 41% subscription, while the quota for non-institutional investors received 11% subscription. The portion for Qualified Institutional Buyers (QIBs) got subscribed to 11%. Among the QIBs, the number of shares bid by the foreign institutional investors (FIIs) were 9,03,788 at the end of Day 2.

The Initial Public Offer (IPO) of up to 67,08,000 equity shares has a price range of ₹205-216 per share.

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 firm, which operates 5-star hotels and resorts under the brand name The Leela Palaces and Hotels, is planning to raise ₹3,500 crore from the IPO, which is a combination of a fresh issue of ₹2,500 crore and an offer for sale worth ₹1,000 crore.

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.

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.