Leela Hotels IPO: Schloss Bangalore Ltd., which runs the hotel chain brand 'Leela Hotels', is witnessing subdued investor response in the primary market. On Day 2 of the bidding period, the public offering was subscribed just 9%, receiving overall bids of 43,95,452 shares against 4,66,10,169 shares on offer as of 01:00 pm, according to BSE data.
The company is planning to raise Rs 3,500 crore via the IPO. The offering comprises of fresh issue of 5.75 crore shares alongside an offer for sale of 2.3 crore shares. The bidding window is set to close tomorrow May 28, 2025 (Wednesday). The tentative date of listing, as of now, is fixed for June 2, 2025 (Monday).
Leela Hotels IPO GMP
GMP or grey market premium refers to the price level at which the shares of the company trade in the grey market before hitting the official bourses (National Stock Exchange and Bombay Stock Exchange).
As of 01:11 pm, the shares of the Leela Hotel were trading at a GMP of Rs 12.5, commanding a subdued premium of just 2.87%.
The price band of the IPO was fixed at Rs 413 and Rs 435 per share. JM Financial Ltd, Bofa Securities India Ltd, Morgan Stanley India Company Pvt Ltd, JP Morgan India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, Citigroup Global Markets India Pvt. Ltd., IIFL Securities Ltd, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Ltd are the book running lead managers of the IPO.
Analysts Weigh In
Schloss Bangalore Ltd. is among the leading names in the hospitality industry and owns multiple luxury hotel chains. The company's portfolio includes 3,553 keys across 13 operating hotels in 11 cities as of March 31, 2025. They are planning to add 7 new hotels with 678 keys.
However, a big chunk of their total income comes from the five hotels owned by them and any adverse developments impacting such hotels or regions could have a negative effect on the company's business and the overall financial condition.
"At the upper price band company is valuing at PE of 266.8x, Price-to-sales of 11.2x and market cap of Rs 1,45,271 million 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," Anand Rathi brokerage firm stated in its report.
