Leela Hotels IPO opens next week. GMP, date, valuation, other details in 10 points

Leela Hotels IPO: The initial public offering (IPO) of Schloss Bangalore Ltd, the operator of the luxury hotels brand “The Leela” in India, will open for public subscription next week. The company aims to raise up to ₹3,500 crore from the primary market.

The company’s portfolio comprises 3,553 keys across 13 operational hotels under the brands of The Leela Palaces, The Leela Hotels and The Leela Resorts, placing the company among the largest luxury hospitability players in India.

Out of the total portfolio, 5 properties are owned and managed by the company, 7 are managed properties and 1 is a franchised property. As of December 2024, its portfolio was present in all 7 top business markets and 3 of the top 5 leisure markets of India, accounting for nearly 18% of the total existing luxury keys across these markets.

Ahead of the Leela Hotels IPO opening next week, let us check the key details, including the grey market premium (GMP), dates, valuations and others.

Leela Hotels IPO: 10 things to know

1] Leela Hotels IPO Dates: Leela Hotels IPO will open for public subscription on Monday, May 26, and will close on Wednesday, May 28. The IPO allotment date is likely May 29, while the equity shares of the company are estimated to be listed on June 2. Leela Hotels shares will be listed on both the stock exchanges - BSE and NSE.

2] Leela Hotels IPO Price Band: Leela Hotels IPO price band has been set at ₹413 to ₹435 per share. The minimum lot size for an application in Leela Hotels IPO is 34 shares. Thus, the minimum investment amount required by retail investors is ₹14,042.

3] Leela Hotels IPO Size: At the upper-end of the price band, Leela Hotels IPO size is ₹3,500 crore.

4] Leela Hotels IPO Details: Leela Hotels IPO is a combination of fresh issue of 5.75 crore equity shares worth ₹2,500 crore and an offer-for-sale (OFS) component of 2.30 crore shares aggregating to ₹1,000 crore.

5] Leela Hotels IPO OFS: Project Ballet Bangalore Holdings (DIFC) Pvt Ltd, the promoter group entity of Schloss Bangalore Ltd, is set to divest its stake worth ₹1,000 crore in the IPO.

6] Leela Hotels IPO Objectives: The plans to utilise the net issue proceeds for the repayment or prepayment or redemption of certain outstanding borrowings availed by it and certain of its subsidiaries, namely, Schloss Chanakya, Schloss Chennai, Schloss Udaipur and TPRPL, through investment in such subsidiaries, and for general corporate purposes.

7] Leela Hotels IPO Reservation: In the Leela Hotels IPO, up to 75% is reserved for qualified institutional buyers (QIBs), with anchor investors being allocated up to 60% of the QIB portion — or roughly ₹1,575 crore. Non-institutional investors (NIIs) will get 15% of the issue, while 10% has been reserved for retail investors.

8] Leela Hotels IPO Valuation: At the post issue capital of upper price band, the company is valued at FY25 EV/EBITDA multiple of 26.3x. The company’s Revenue and EBITDA have grown at a CAGR of 23% and 25% respectively over the last 2 years while on a net basis, the business has turned profitable in FY25.

9] Leela Hotels IPO BRLM, Registrar: JM Financial, Bofa Securities India, Morgan Stanley India Company, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, Motilal Oswal Investment Advisors, SBI Capital Markets are the book running lead managers of the Leela Hotels IPO, while Kfin Technologies is the IPO registrar.

10] Leela Hotels IPO GMP: Leela Hotels IPO is showing a bullish trend in the unlisted market with rising grey market premium (GMP). According to stock market observers, Leela Hotels IPO GMP today has risen to ₹15 per share.

This indicates that in the grey market, Leela Hotels shares are trading higher by ₹15 than their issue price. Considering the Leela Hotels IPO GMP today, the company’s shares are estimated to trade at ₹450 apiece in the grey market, which is at a premium of 3.45% to the IPO price of ₹435 per share.

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