The initial public offering (IPO) of Schloss Bangalore, operating under Leela Hotels, which opened on Monday, May 26, has seen a subdued response from investors. Data from the NSE indicates that as of 1 pm on Tuesday, May 27, the Rs 3,500 crore issue received bids for just 43,30,954 shares against the 4,66,10,169 shares available, resulting in a low subscription rate of approximately 9 per cent.
Breaking down the investor participation, retail investors led the demand, oversubscribing their reserved portion by 32 per cent. Non-Institutional Investors (NIIs) showed limited interest with a 6 per cent subscription, while Qualified Institutional Buyers (QIBs) subscribed for only 3 per cent of their allocation, as per a Business Standard report.
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Details Of Leela Hotels IPO
This book-built public issue consists of a fresh issuance of 57.5 million equity shares, alongside an offer-for-sale (OFS) of 23 million shares by the promoter, Project Ballet Bangalore Holdings. The price band for the IPO is set between Rs 413 and Rs 435 per share, with a lot size fixed at 34 shares. This means investors can bid for a minimum of 34 shares and in multiples thereof.
At the upper price limit, a retail investor needs approximately Rs 14,790 to apply for one lot, while the maximum retail application limit is 13 lots (442 shares), equating to Rs 1,92,270.
Grey Market Premium And Broker Recommendations
In the grey market, Leela Hotels shares have been trading at a muted premium. As per the Business Standard report citing sources tracking unofficial trades reported the shares changed hands around Rs 447.5, which is a Rs 12.5 (2.87 per cent) premium over the issue’s upper price band.
Brokerage firms including Anand Rathi Research and Bajaj Broking have given positive recommendations, advising investors to consider subscribing for the long term.
IPO Timeline And Listing
The subscription window remains open for three days, closing on Wednesday, May 28, 2025. The allotment basis is expected to be finalised on Thursday, May 29, with shares credited to demat accounts by Friday, May 30. Leela Hotels’ shares are scheduled to debut on the BSE and NSE on Monday, June 2, 2025.
