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Leela Hotels IPO listing date has been scheduled for Monday, June 2. Leela Hotels IPO allotment was finalised yesterday (Thursday, May 29). For those who have been allocated shares, the crediting of shares to demat accounts will occur today, Friday, May 30. The process of refunding those who have not yet received their shares will likewise be finished today.

The debut share offering of Schloss Bangalore, which manages Leela Palaces Hotels and Resorts, saw a Leela Hotels IPO subscription status at 4.50 times by the end of bidding on Wednesday. The allocation for Qualified Institutional Buyers (QIBs) was subscribed 7.46 times, while the segment for non-institutional investors received a subscription of 1.02 times. The share category for Retail Individual Investors (RIIs) achieved an 83% subscription rate.

Leela Hotels IPO price band was fixed at ₹413-435 per share. Leela Hotels IPO lot size was 34 equity shares and in multiples of 34 equity shares thereafter. Within the public issue, Leela Hotels has allocated 75% of the shares for QIB, 15% for NII, and 10% is designated for retail investors.

Schloss Bangalore, known for its luxurious properties under "The Leela" brand, operated a total of 3,382 rooms across 12 hotels as of May 31, 2024. Its portfolio includes The Leela Palaces, The Leela Hotels, and The Leela Resorts, located in 10 different cities throughout the nation.

The parent company, Schloss Bangalore, secured ₹1,575 crore from its anchor investors during the IPO. On the financial side, the organization has seen impressive growth, with EBITDA increasing from ₹87.72 crore in FY22 to ₹600.03 crore in FY24.

As per Prashanth Tapse, Senior Vice President of Research and Research Analyst at Mehta Equities Ltd, Tapse expects Schloss Bangalore Ltd (Leela Hotels) to have a flat listing, considering the reasonable subscription levels in a market with subdued sentiment. Nonetheless, he believes the company presents a strong long-term opportunity, in line with the ongoing structural growth in India’s luxury hospitality and tourism industry.

"We recommend allotted investors to HOLD it for long-term perspective, as the company is well positioned to benefit from improving macro trends in travel and high-end hospitality while non-allotted investors can WAIT & WATCH for potential post-listing discount to enter at more attractive valuations," said Prashanth Tapse.

Let's check what does Leela Hotels IPO GMP today signal ahead of listing.

Leela Hotels IPO GMP today is +3. This indicates Leela Hotels share price was trading at a premium of ₹3 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Leela Hotels share price is indicated at ₹438 apiece, which is 0.69% higher than the IPO price of ₹435.

According to the grey market activities observed over the past 14 sessions, the current GMP ( ₹3) indicates a trend toward decline. The minimum GMP recorded is ₹0.00, while the maximum is ₹20, as stated by an expert from investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Leela Hotels IPO worth ₹3,500 crore, which consists of a fresh equity share issuance of ₹2,500 crore and an offer for sale (OFS) of ₹1,000 crore by its promoter, Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.

Schloss Bangalore, supported by Brookfield Asset Management, intends to allocate the proceeds from the fresh equity issuance to settle loans taken by the company and its subsidiaries, as well as for various general corporate activities.

The IPO is being overseen by a consortium of 11 merchant bankers, including JM Financial, BofA Securities India, Morgan Stanley India Company, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.

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.

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