The Leela Hotels IPO: Schloss Bangalore Ltd Sets Price Band; Know Subscription Date, GMP, Offer Size Details

Schloss Bangalore Limited, supported by Brookfield and operating the luxury hotel chain The Leela Hotels and Resorts in India has revealed the price range for its forthcoming Initial Public Offering (IPO). The public offering will be open for subscription from 26 May 2025 and will close on 28 May 2025.

Schloss Bangalore Limited IPO Details and Timeline

The IPO aims to generate Rs 3,500 crore, which marks a reduction from the originally planned Rs 5,000 crore. The structure of the issue includes a fresh issue of equity shares worth Rs 2,500 crore, in addition to an offer for sale (OFS) totalling Rs 1,000 crore. Upon the conclusion of the subscription window on 28 May, the allotment of shares is expected to be finalised on 29 May. The shares are tentatively set to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on 2 June.

Several prominent book-running lead managers are leading the issue including JM Financial, BofA Securities India, Morgan Stanley India, JP Morgan India, Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India, IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets. KFin Technologies will serve as the official registrar for the IPO.

The Leela Hotels IPO Price Band and Lot Size

The price band for the IPO has been established at Rs 413 to Rs 435 per equity share. Retail investors can apply for a minimum of one lot, which includes 34 equity shares. They are allowed to bid for up to a maximum of 13 lots. At the lower end of the price range, the investment required for a single lot is Rs 14,042, while at the upper end, one lot would cost Rs 14,790.

The IPO is being conducted through a book-building process with clearly defined quotas for various investor groups. A substantial 75% of the total offering is allocated to Qualified Institutional Buyers (QIBs). Within this category, up to 60%-equivalent to Rs 1,575 crore-is designated for anchor investors. The remaining 25% of the issue is divided between non-institutional investors (15%) and retail investors (10%).

Leela Hotels IPO GMP

Leela Hotels IPO saw a sharp rise in grey market premium (GMP), jumping from Rs 0 on May 20 to Rs 21 on May 21, indicating growing investor interest ahead of its official listing, according to the IPO Watch website. The GMP is unofficial and speculative, and should not be treated as an indicative price.

About Company

Founded in 2019, Schloss Bangalore operates The Leela-branded luxury hotels and resorts across India. The firm is one of the largest players in India's luxury hospitality sector, based on the number of rooms under management. As of May 2024, the company's portfolio comprises 12 operational hotels offering a total of 3,382 rooms. These properties are marketed under three brand categories: The Leela Palaces, The Leela Hotels, and The Leela Resorts.

Schloss Bangalore follows a hybrid business model that involves both direct property ownership and third-party hotel management agreements. The proceeds from the fresh issue will primarily be used to repay, prepay, or redeem-either in part or in full-certain outstanding borrowings. These borrowings are related to both the company itself and its subsidiaries, including Schloss Chanakya, Schloss Chennai, and Schloss Udaipur, through direct investment into these entities. A portion of the funds will also be utilised for general corporate purposes.

The company's promoters include a number of entities, such as Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, as well as other similarly named holdings based in the Dubai International Financial Centre (DIFC).