Leela Hotels IPO Subscribed 4.5 Times On Final Day; Check GMP

The initial public offering of Schloss Bangalore Ltd., the operator of the Leela Hotels' chain, has been subscribed 4.5 times on its final day on Wednesday, led by demand from institutional buyers. The portion of retail investors remained underbid.

The IPO had witnessed sluggish demand initially, being subscribed 6% on its first day, and 17% on its second day.

The grey market premium of the IPO has dropped to Rs 2, according to InvestorGain. This implies shares of the company will likely list at Rs 437 apiece, indicating a 0.46% premium to the upper end of the price band.

The IPO will consist of fresh equity shares worth Rs 2,500 crore and an offer for sale component totaling Rs 1,000 crore. The price band for the IPO has been set in the range of Rs 413 to Rs 435 per share.

The company intends to use net proceeds from the issue towards repayment of outstanding borrowings, and for general corporate purposes.

• Issue opens: May 26.

• Issue closes: May 28.

• Issue price: Rs 413–435.

• Offer for sale: Rs 1,000 crore.

• Fresh issue: Rs 2,500 crore.

• Total issue size: Rs 3,500 crore.

• Lot size: Minimum 34 shares, and then in multiples thereof.

Schloss Bangalore is an Indian luxury hospitality company that owns, operates, manages, and develops premium hotels and resorts under the 'The Leela' brand.

As of March 31, 2025, the company holds a portfolio of 13 operational hotels encompassing 3,553 keys, making it the largest pure-play luxury hospitality operator in India by room count. This portfolio includes five owned hotels, seven managed properties, and one franchised hotel.

Looking ahead, Schloss Bangalore plans to expand its luxury hospitality footprint by adding seven new properties by 2028, both within India and internationally, contributing over 678 new keys to its portfolio.

The Leela Hotels IPO has been subscribed 4.5 times as of 7:00 p.m. on Wednesday.

• Qualified institutional buyers: 7.76 times.

• Non-institutional investors: 1.02 times.

• Retail investors: 0.83 times, or 83%.

The grey market premium of the IPO has dropped to Rs 2, according to InvestorGain. This implies shares of the company will likely list at Rs 437 apiece, indicating a 0.46% premium to the upper end of the price band.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.