Post Date: 26 May, 2025
Schloss Bangalore IPO Opens: Schloss Bangalore Limited, the company behind the prestigious The Leela Palaces, Hotels & Resorts, has officially launched its Initial Public Offering (IPO) valued at ₹3,500 crore. The IPO opened for public subscription on Monday, May 26, 2025, and will remain available until Wednesday, May 28, 2025. This marks a significant milestone for the luxury hospitality group as it takes a major step into the public market.
Schloss Bangalore IPO Opens
Investors now have a chance to participate in the growth of one of India’s most iconic premium hotel chains. With strong brand recognition and a legacy of excellence, the IPO has generated considerable interest among both retail and institutional investors seeking long-term opportunities in the luxury travel and hospitality sector.
Leela Hotels IPO Details
| Parameter | Details |
| IPO Open Date | May 26, 2025 |
| IPO Close Date | May 28, 2025 |
| Price Band | ₹413 – ₹435 per share |
| Lot Size | 34 shares (minimum investment: ₹14,790) |
| Total Issue Size | ₹3,500 crore |
| Fresh Issue | ₹2,500 crore (5.75 crore shares) |
| Offer for Sale (OFS) | ₹1,000 crore (2.30 crore shares by Brookfield) |
| Anchor Investment | ₹1,575 crore raised on May 23, 2025 |
| Listing Date | Expected on June 2, 2025 |
| Stock Exchanges | BSE and NSE |
| Lead Managers | JM Financial, BofA Securities, Morgan Stanley, Kotak Mahindra Capital, Axis Capital, Citigroup, IIFL Securities, Motilal Oswal, SBI Capital Markets. |
About The Company
Schloss Bangalore Ltd is the proud operator of the iconic luxury hospitality brand, The Leela. Renowned for elegance, exceptional service, and premium locations, the company plays a significant role in India’s high-end hotel industry.
- Brand Portfolio: Operates under The Leela brand, which includes The Leela Palaces, The Leela Hotels, and The Leela Resorts.
- Hotel Count: Manages a total of 13 hotels across India.
- Operational Properties: As of May 31, 2024, 12 hotels are operational, with one more in the pipeline.
- Room Inventory: Offers a total of 3,382 keys (rooms) across its properties.
- Geographical Reach: Presence in 10 major cities including Delhi, Mumbai, Bengaluru, Chennai, Udaipur, and Goa.
- Market Position: Positioned as one of India’s premier luxury hotel chains catering to both leisure and business travelers.
Schloss Bangalore Ltd is a symbol of opulence in Indian hospitality.
Financial Performance
|
Financial Year |
EBITDA (₹ crore) | Net Profit (₹ crore) |
| FY22 | 87.72 | Data not specified |
| FY24 | 600.03 | Data not specified |
The company has experienced notable growth, with operating profit, or EBITDA, rising from ₹87.72 crore in FY22 to ₹600.03 crore in FY24.
IPO Subscription Status (Day 1)
As of 12:03 IST on May 26, 2025, the IPO has been subscribed 2% overall. The initial share sale received bids for 9,58,800 shares against 4,66,10,169 shares on offer. The portion for retail investors received 10% subscription, while the quota for non-institutional investors subscribed 1%. The qualified institutional buyers (QIBs) portion is yet to be booked.
Grey Market Premium (GMP)
As of May 26, 2025, the Leela Hotels IPO is commanding a grey market premium (GMP) of ₹13 per share. Considering the upper end of the IPO price band (₹435), the estimated listing price is ₹448, indicating a 2.99% premium. Over the last 10 sessions, the GMP has ranged from ₹0 to ₹20, showing an upward trend.
Key Risks from RHP
Investors should consider the following risks highlighted in the Red Herring Prospectus (RHP):
- Brand Reputation: Any deterioration in the quality or reputation of “The Leela” brand could adversely affect the business.
- Revenue Concentration: A significant portion of total income is derived from five hotels, contributing over 90% of income in recent years.
- Past Losses: The company and certain subsidiaries have incurred losses in FY23 and FY24, which may continue in the future.
Valuation Metrics
- Price-to-Earnings (P/E) Ratio: 220.8x based on FY25 earnings at the upper price band.
- Price-to-Book (P/B) Ratio: 2.92x, which is considered reasonable.
Analysts from Canara Bank Securities note that while the P/E ratio is high compared to peers, the P/B ratio is acceptable. BP Equities advises a “SUBSCRIBE” rating for medium to long-term investors, citing the company’s growing portfolio, positive industry trends, and plans to reduce debt.
The Leela Hotels IPO presents an opportunity to invest in a prominent luxury hospitality brand with a strong presence in India. While the company has shown significant growth in EBITDA, potential investors should carefully consider the high valuation and risks outlined in the RHP. The current GMP suggests moderate listing gains. Investors with a medium to long-term investment horizon may find this IPO appealing.
For more detailed information and updates, you can refer to the official The Leela Hotels IPO page.
Also Read: Belrise Industries IPO Allotment Status and Latest Update