Leela Hotels IPO to Open on May 26: Check Timelines, Price Band, GMP and More

Schloss Bangalore Limited, the Brookfield-backed entity operating the luxury hotel chain The Leela Hotels and Resorts in India, has announced the price band for its upcoming initial public offering (IPO). The public issue is set to open for subscription on 26 May 2025 and will conclude on 28 May 2025.

IPO Details and Timeline

The Leela Hotels IPO aims to raise a total of ₹3,500 crore. This figure represents a reduction from an initially planned size of ₹5,000 crore. The issue structure comprises a fresh issue of shares worth ₹2,500 crore and an offer for sale (OFS) amounting to ₹1,000 crore.

Following the subscription period ending 28 May, the allotment for the IPO is expected to be finalised on Thursday, 29 May. The shares of Leela Hotels are tentatively scheduled to be listed on the BSE and NSE on Monday, 2 June. 

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, and SBI Capital Markets Limited are acting as the book running lead managers for the IPO, with Kfin Technologies Limited serving as the registrar for the issue.

Price Band and Lot Size

The company has fixed the price band for the IPO at ₹413 to ₹435 per equity share. Retail investors are permitted to place bids for a minimum of one lot, consisting of 34 shares.

The maximum bid allowed for retail investors is 13 lots. The minimum investment required by retail investors is ₹14,042, which corresponds to the lower end of the price band for a minimum lot. At the upper end of the price band (₹435), one lot of 34 shares would cost ₹14,790.

Issue Structure and Allocation

The IPO follows a book building process with a defined allocation structure across different investor categories. A substantial 75% of the total public issue is reserved for Qualified Institutional Buyers (QIBs).

Within the QIB portion, up to 60% -amounting to ₹1,575 crore - is earmarked for anchor investors.

The remaining 25% of the issue is split between non-institutional investors (NIIs) and retail investors. 15% of the shares are set aside for non-institutional investors, while 10% is allocated to retail investors.

Grey Market Premium

Market observers note that shares of Leela Hotels IPO are currently trading at a premium of ₹18 in the grey market

Note: The Grey Market Premium (GMP) is not an official price and is based on Market Speculation.

Source: LiveMint Report Dated May 21, 2025

Disclaimer: The GMP (Grey Market Premium) price is an unauthenticated market related news and has no discernible basis. The same quoted above is as per news appeared in the media report and is for information purposes only. The investor shall do their own study/research before using the same for taking any decision to invest. We neither engage in, trade, or deal in the grey market nor we recommend or endorse trading in the grey market.

Company Profile and Objectives

Established in 2019, Schloss Bangalore operates "The Leela" brand of luxury hotels and resorts across India. The company is described as one of India's largest luxury hospitality companies by number of keys. As of May 2024, its portfolio includes 12 operational hotels with a total of 3,382 keys, operating under The Leela Palaces, The Leela Hotels, and The Leela Resorts brands. The business model includes both direct ownership and hotel management agreements with third parties. 

The primary objectives for utilising the proceeds from the fresh issue component of the IPO include the repayment, prepayment, or redemption, either in full or in part, of certain outstanding borrowings. These borrowings pertain to the company itself and some of its subsidiaries, namely Schloss Chanakya, Schloss Chennai, Schloss Udaipur through investment in these subsidiaries. The funds will also be used for general corporate purposes.

The promoters of the company include several entities, including Project Ballet Bangalore Holdings (DIFC) Pvt Ltd and other similarly named DIFC-based holdings.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here