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Last Updated:May 27, 2025, 11:59 IST

Leela Hotels IPO: The IPO aims to raise Rs 3,500 crore, with Rs 2,500 crore from a fresh issue and Rs 1,000 crore from an OFS.

Leela Hotels IPO GMP Today: Leela Hotels parent Schloss Bangalore, known for its luxury hotels and resorts, opens for subscription on Monday, i.e. May 26, 2025. The three-day subscription window will be available until May 28, 2025. The IPO consists of a fresh issue and an offer-for-sale (OFS).

Leela Hotels IPO Subscription Status

As of 11:40 am on Day 02, the Leela Hotels IPO subscription status shows that the Qualified Institutional Buyers (QIBs) category has 2,54,23,729 shares offered, but only 8,04,576 shares have been bid for, making the subscription rate 0.03 times. Among QIBs, mutual funds alone have placed bids amounting to 8,04,576 shares. In the Non-Institutional Investors (NII) category, 1,27,11,864 shares are available, with bids for 6,65,516 shares, resulting in a subscription rate of 0.05 times. This category includes Corporates, Individuals with more than ten lakh rupees, and others, who have collectively bid for small portions of the available shares.

The Retail Individual Investors (RIIs) category, with 84,74,576 shares on offer, has seen a higher interest, with 24,93,356 shares bid for, leading to a subscription rate of 0.29 times. Within this category, bids at the cut-off price account for 22,29,346 shares, while price bids make up 2,64,010 shares. Overall, across all categories, 4,66,10,169 shares have been offered, while 39,63,448 shares have been bid for, achieving an overall subscription rate of 0.09 times.

10 Things You Should Know About Leela Hotels IPO

1. Leela Hotels IPO Issue Size

The IPO aims to raise Rs 3,500 crore, with Rs 2,500 crore from a fresh issue and Rs 1,000 crore from an OFS. The raising amount is down from earlier planned of Rs 5000 crore.

2. Leela Hotels IPO Price Band

The price band for the issue is set at Rs 413 to Rs 435 per share, with a minimum bid quantity of 34 shares, which translates to a minimum investment of Rs 14,790 at the upper end of the price band for retail investors. The IPO will be open for bidding from May 26 to May 28, with the share allotment expected to be finalized on May 30.

3. Leela Hotels IPO GMP

According to various market observers, the current GMP of Leela Hotels IPO is trading at Rs 449 at a premium of 3.21 per cent (Rs 14) on the upper cap of the price band of Rs 435.

4. Leela Hotels IPO Allotment And Listing Dates

Successful bidders should see shares credited to their demat accounts by May 30, with refunds issued on the same day. The shares are scheduled to list on the BSE and NSE on June 02, 2025.

5. Leela Hotels IPO Objectives

Leela Hotels plans to utilize Rs 2,500 crore from the fresh issue for the following purposes:

– Repayment of outstanding borrowings: Approximately Rs 2,300 crore will be used to repay/pre-pay certain borrowings of the company and its subsidiaries.

– General corporate purposes: A portion of the IPO proceeds will be allocated for general corporate purposes, not exceeding 25% of the gross proceeds.

6. Leela Hotels Financials

Schloss Bangalore Limited’s financial performance shows a 15% increase in revenue and a significant 2341% rise in profit after tax (PAT) between the financial years ending March 31, 2024, and March 31, 2025.

As of March 31, 2025, the company’s assets stood at Rs 8,266.16 crore, with revenue at Rs 1,406.56 crore and PAT at Rs 47.66 crore. The company’s net worth improved to Rs 3,604.99 crore, and its total borrowings were Rs 3,908.75 crore. Leela Hotels operates 3,553 keys across 13 hotels under The Leela Palaces, Hotels, and Resorts, with a strategic presence in 10 key destinations in India, covering a significant portion of international and domestic air traffic in FY 25.

7. Leela Hotels Boon Running Managers

JM Financial Limited, Bofa Securities India Limited, Morgan Stanley India Company Pvt Ltd, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, Iifl Securities Ltd, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited are the book running lead managers of the Leela Hotels IPO, while Kfin Technologies Limited is the registrar for the issue.

8. Leela Hotels Promoters

Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, BSREP III Joy (Two) Holdings (DIFC) Limited, BSREP III Tadoba Holdings (DIFC) Pvt Ltd, Project Ballet Chennai Holdings (DIFC) Pvt Ltd, Project Ballet Gandhinagar Holdings (DIFC) Pvt Ltd, Project Ballet HMA Holdings (DIFC) Pvt Ltd and Project Ballet Udaipur Holdings (DIFC) Pvt Ltd are the company promoters.

9. Leela Hotels

Founded in 1986, Schloss Bangalore is the parent company of the luxury hotel chain “The Leela” in India, one of the largest luxury hospitality chains in the country in terms of the number of keys.

10. Should You apply for Leela Hotels IPO?

Bajaj Broking recommends subscribe for long-term view.

Leela Hotels’ IPO, priced at Rs 435 per share, has drawn mixed responses due to its steep valuations. Canara Bank Securities flagged the high P/E of 220.8x (vs peer average of 98.9x) but noted improved operating leverage and a reasonable P/B of 2.92x, issuing a “Subscribe with Caution” for high-risk, long-term investors. BP Equities also cited valuation concerns but highlighted the company’s growth prospects, sector outlook, and debt reduction plans, recommending a “Subscribe” for medium to long-term investors. Anand Rathi called the IPO fairly priced relative to future potential despite a 266.8x P/E and 30x EV/EBITDA, suggesting a “Subscribe – Long Term.” Bajaj Broking was more skeptical, citing negative EPS (₹–0.12) and NAV (₹–160.57), warning that Leela trades at a steep premium to stronger peers like Indian Hotels and EIH.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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