Leela Hotels shares: Should you buy, hold or sell after a weak listing?

Leela Hotels share price made a tepid debut in the Indian stock market today amid weak sentiment. The equity shares of luxury hospitality chain Schloss Bangalore, which operates hotels under the brand “The Leela” in India, were listed at a discount to their initial public offering (IPO) price on the stock exchanges today.

Leela Hotels share price was listed at ₹406 apiece on the NSE, a discount of 6.67% to its IPO price of ₹435 per share. On the BSE, Leela Hotels stock got listed with a 6.55% discount at ₹406.50 per share.

After the listing, Leela Hotels shares gained over 7% from its listing price and traded marginally higher from its IPO price. 

Leela Hotels IPO listing was slightly weaker than Street estimates as the Leela Hotels IPO GMP signalled a flat debut.

However, analysts are bullish on the long-term prospects of the company despite a muted listing of shares. Here’s what analysts suggest to do with Leela Hotels shares after listing.

Should you buy, sell or hold Leela Hotels shares after listing?

Despite weak market sentiment, Leela Hotels’ IPO debuted flat in line with our expectations, said Prashanth Tapse, Senior VP Research at Mehta Equities Ltd.

“We view the company as a compelling long-term play, aligned with the structural growth in India’s luxury hospitality and tourism sector. We recommend allotted investors to HOLD Leela Hotels shares for a long-term perspective, as the company is well positioned to benefit from improving macro trends in travel and high-end hospitality,” Tapse said.

According to Avinash Gorakshakar, Head of Research at Profitmart Securities, Leela Hotels is a good long term story, but he believes the valuations in near term are not cheap which resulted in the stock opening lower than the IPO price.

“Investors looking at a time frame of next 2 to 3 years can expect a decent risk reward in Leela Hotels shares,” Gorakshakar said.

Leela Hotels IPO Details

Leela Hotels IPO opened for subscription from May 26 to May 28, 2025. Leela Hotels IPO listing date was today, 2 June, 2025, and the shares are listed on BSE and NSE.

The company raised ₹3,500 crore from the public issue at a price band of ₹435 per share. Leela Hotels IPO was subscribed 4.50 times in total

It plans to utilise the net issue proceeds for repayment in full or in part, of certain outstanding borrowings availed by the company, and its subsidiaries, and for general corporate purposes.

Schloss Bangalore is one of India’s largest luxury hospitality companies by number of keys, with a portfolio of 12 operational hotels comprising 3,382 keys.

At 1:25 PM, Leela Hotels share price was trading at ₹433.65 apiece on the BSE, higher by 6.68% from its listing price, and down by 0.31% from its IPO price.

Read Leela Hotels Share Price Live Updates here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.