Luxury hospitality group Schloss Bangalore, which operates under the “The Leela” brand in India, saw a lukewarm debut on the stock market on Monday, June 2. Leela Hotels’ IPO shares opened at a discount of approximately 6.5% compared to their issue price.
On the NSE, the stock opened at ₹406, marking a 6.67% drop from the IPO price of ₹435. On the BSE, it opened slightly higher at ₹406.50, a 6.55% discount. The listing price also fell short of the IPO’s grey market premium (GMP), which stood at ₹2 per share earlier in the day.
Leela Hotels’ stock managed to recover some ground during the trading session, climbing over 4% above its listing price. However, it continued to trade nearly 2% below its IPO issue price.
As of 10:17 AM, Leela Hotels’ stock was trading at ₹425 on the BSE, reflecting a 4.55% gain over its listing price of ₹406.50. On the NSE, the stock stood at ₹424.65, marking a 4.6% rise from its opening level.
The company offered the Leela Hotels IPO for subscription from May 26 to May 28, with a price band of ₹413 to ₹435 per share.
The Leela Hotels IPO saw a moderate response, receiving an overall subscription of 4.72 times by the end of the three-day bidding window. Retail investors subscribed to 0.87 times their allotted portion, non-institutional investors subscribed 1.08 times, while qualified institutional buyers (QIBs) showed strong interest by subscribing 7.82 times.
Through this public issue, the company raised ₹3,500 crore. This included ₹2,500 crore from the issuance of 5.75 crore fresh equity shares and ₹1,000 crore via an offer for sale (OFS) of 2.30 crore shares.
The company intends to utilize the proceeds from the fresh issue primarily for the repayment or redemption, in full or in part, of certain outstanding borrowings taken by the company and its subsidiaries. A portion of the funds will also be allocated for general corporate purposes.
Leela Hotels made a subdued stock market debut, listing at a discount despite a moderately subscribed IPO. While the shares showed some recovery post-listing, they continued to trade below the issue price.
Backed by ₹3,500 crore in capital raised through a mix of fresh equity and offer for sale, the company aims to strengthen its financial position by repaying outstanding borrowings and supporting general corporate needs. The listing reflects cautious investor sentiment but also highlights long-term potential in the luxury hospitality space.
