The Leela Hotels IPO, backed by parent company Schloss Bangalore, wraps up today, May 28, marking the final opportunity for investors to participate in this much-anticipated luxury hospitality offering. Despite the brand’s prestige, the IPO’s third-day numbers suggest a cautious investor response.
Leela Hotels IPO Subscription Update and Key Details
As of 10:39 AM on Day 3, the Leela Hotels IPO subscription status stood at just 0.20 times, with 87.8 lakh bids against the 4.42 crore shares on offer. Retail investors led with a 0.49x subscription, while Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) followed at 0.16x and 0.12x, respectively.
The IPO aims to raise Rs 3,500 crore—down from the initially planned Rs 5,000 crore—comprising a Rs 2,500 crore fresh issue and a Rs 1,000 crore offer-for-sale. The IPO price band is set between Rs 413 to Rs 435 per share, with the minimum investment for retail bidders calculated at Rs 14,790 for 34 shares at the upper limit.
The Leela Hotels IPO GMP (grey market premium) was reported at Rs 14, translating to a marginal premium of 1.03% on the top price band. This tepid premium reflects the broader investor skepticism about valuation levels.
Financial Highlights and Listing Timeline
According to the Red Herring Prospectus, Schloss Bangalore Limited recorded a 2341% increase in profit after tax (PAT) in FY25 compared to FY24, with PAT hitting Rs 47.66 crore and revenue growing 15% to Rs 1,406.56 crore. The company’s total assets reached Rs 8,266 crore and its net worth improved to Rs 3,605 crore, though borrowings remain high at Rs 3,909 crore.
The IPO proceeds are earmarked primarily for debt reduction (Rs 2,300 crore) and general corporate purposes. Leela operates 3,553 rooms across 13 properties in prime Indian destinations, tapping into high-volume international and domestic travel corridors.
Share allotment is expected by May 30, with refunds processed the same day. Successful investors can expect demat credit shortly after, and the Leela Hotels IPO listing date is set for June 2 on both the NSE and BSE.
Analyst Opinions: Should You Subscribe?
Brokerages remain split on the IPO’s appeal. Bajaj Broking sees long-term potential but warns against high valuations, noting negative EPS (-Rs 0.12) and a NAV of -Rs 160.57. Canara Bank Securities pointed to an aggressive P/E ratio of 220.8x versus a peer average of 98.9x, recommending a “Subscribe with Caution” stance.
Meanwhile, BP Equities and Anand Rathi acknowledged valuation concerns but emphasized Leela’s brand value, growth prospects, and strategic locations, urging a long-term investment approach. For those comfortable with higher risk and seeking exposure to India’s booming luxury travel segment, the Leela Hotels IPO could be a worthwhile consideration—if the valuation aligns with future earnings growth.