Leela Hotels IPO shares list at ₹406, a 6.7% discount to issue price

Leela Hotels IPO listing: Luxury hospitality chain Schloss Bangalore, which operates hotels under the brand "The Leela" in India, witnessed a tepid stock market debut on Monday, June 2. Leela Hotels IPO shares listed at around a 6.5% discount to their initial public offering (IPO) price on the exchanges today.

On the NSE, Leela Hotels share price opened at ₹406, down 6.67% from its IPO price of ₹435. Meanwhile, on the BSE, Leela Hotels stock debuted at a 6.55% discount at ₹406.50. The listing was below the Leela Hotels' IPO GMP of ₹2 apiece earlier today.

Leela Hotels' stock, however, recouped some losses as the session progressed, rising over 4% above its listing price, but still nearly 2% below the IPO price.

As of 10.17 am, the stock traded at ₹425, up 4.55% over the listing price of ₹406.50. On the NSE, the stock was at ₹424.65, up 4.6%.

Leela Hotels IPO

The Leela Hotels IPO, which ran for subscription from May 26 to May 28, was priced in the range of ₹413 to ₹435 per share.

The issue garnered decent subscription and received 4.72 times at the end of the three-day bidding process. The retail portion was booked 0.87 times, the non-institutional portion was subscribed 1.08 times, and the qualified institutional buyers portion garnered 7.82 times bids.

The company raised ₹3,500 crore via the public issue, which was a mix of fresh shares and an offer for sale (OFS). The IPO consisted of the sale of 5.75 crore fresh equity shares, amounting to ₹2,500 crore and an OFS component of 2.30 crore shares, worth ₹1,000 crore.

The company plans to use the funds raised via fresh issue to repayment/ repayment/ redeem, in full or in part, certain outstanding borrowings availed by the company and its subsidiaries, along with general corporate purposes.

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, and SBI Capital Markets were the book-running lead managers of the Leela Hotels IPO, while Kfin Technologies was the IPO registrar.

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