Schloss Bangalore IPO Day 3: Leela Hotels IPO Sees 41% Subscription; GMP Remains Flat; Check Lising Outlook

On the final day of bidding, investor interest in the Leela Hotels IPO picked up slightly, though the overall subscription remained below expectations at 41%. However, despite the slight increase in demand, the response remained muted in grey market as GMP continued to stay flat.

Leela Hotels IPO Day 3: Subscription Status Remains Subdued

As of Wednesday, May 28 the IPO was subscribed 0.49 times overall as per the last update on Investorgain website. The retail investor portion was booked 0.53 times, QIBs subscribed 0.63 times, and the NII category lagged with just 0.20 times subscription. Despite the late surge in bids, the IPO still fell short of full subscription.

Leela Hotels IPO GMP Stays Flat on Final Day

Meanwhile, the grey market premium (GMP) for Leela Hotels IPO stayed flat on Day 3. The latest GMP update showed a premium of just Rs. 3 over the upper price band of Rs. 435, indicating an expected listing price of around Rs. 438 providing a minimal gain of 0.69%, due to weak demand in the unofficial market.

More details On this Schloss Bangalore IPO(Leela Hotel IPO)

The Leela Hotels IPO will wrap up its bidding on May 28, and now all eyes are on the allotment date which is May 29, followed by a likely listing on the NSE and BSE on June 2.

This Rs. 3,500 crore IPO is a mix of a fresh issue of Rs. 2,500 crore and an offer for sale worth Rs. 1,000 crore. In total, the public issue consists of 5.75 crore new shares and 2.30 crore shares under OFS.

The price range for Leela Hotel IPO is between Rs. 413 and Rs. 435 per share. For retail investors, the minimum lot size is 34 shares, which means a minimum investment of Rs. 14,042. Now, investors await the next big dates hoping for strong listing gains.

Should You Apply Or Avoid?

Brokerage firm Ventura Securities has recommended a 'Subscribe' rating for the Leela Hotels IPO, citing the company's strong financial performance in FY25. The report stated "Leela Hotels posted a total income of Rs. 1,406.6 crore and EBITDA of Rs. 700.2 crore, delivering an impressive EBITDA margin of 49.78%, significantly higher than most peers in the luxury hospitality space. From FY2019 to FY2024, its Owned Portfolio's RevPAR and ARR recorded healthy compound annual growth rates of 11.8% and 10.8%, outperforming luxury hotel industry standards."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.