Mumbai: The initial public offering (IPO) of Leela Hotels, officially named Schloss Bangalore, closes today, May 28, 2025. The three-day subscription window began on Monday, May 26. However, investor response has been quite weak.
Low Overall Subscription So Far
As per NSE data available till May 27 (the second day), only 17 per cent of the total issue has been subscribed. Out of the 4.66 crore shares on offer, just about 77 lakh shares have received bids.
Retail Investors Show Some Interest
Retail investors were the most active. Their category was oversubscribed by 41 per cent. Non-institutional investors (NIIs) and qualified institutional buyers (QIBs) both showed weak interest, subscribing only 11 per cent each in their respective portions.
IPO Details and Price Band
The IPO consists of two parts:
A fresh issue of 5.75 crore shares worth Rs 2,500 crore.
An offer for sale (OFS) of 2.3 crore shares worth Rs 1,000 crore by promoter Project Ballet Bangalore Holdings.
The price band is Rs 413–435 per share. A retail investor needs Rs 14,790 to apply for the minimum lot of 34 shares. The maximum one can apply for is 13 lots or 442 shares, which costs Rs 1,92,270.
Grey Market Premium (GMP) Still Low
On the last day of bidding, grey market premium (GMP) stands at just Rs 12.5, taking the share price in the grey market to Rs 447.5. That’s only about 3 per cent higher than the IPO’s top-end price of Rs 435.
Brokerage Recommendations
Despite weak subscription numbers, some brokerages like Anand Rathi and Bajaj Broking have given a positive long-term view on the IPO. They suggest subscribing if investors have a long investment horizon.
Where the Money Will Go
The company won’t get any money from the OFS part. The money raised from the fresh issue will be used to:
Repay loans taken by the company and its units like Schloss Chanakya, Schloss Chennai, Schloss Udaipur, and TPRPL.
Meet general corporate needs.
Important Dates to Remember
Allotment finalisation: Expected on May 29, 2025.
Shares in demat: Likely by May 30, 2025.
Listing date: Tentatively set for June 2, 2025, on both BSE and NSE.
Lead Managers and Registrar
KFin Technologies is the IPO registrar. The lead managers include JM Financial, BofA Securities, Morgan Stanley, Kotak Mahindra Capital, Axis Capital, Citi, IIFL, Motilal Oswal, and SBI Capital Markets.
