Leela IPO sees 17% subscription on Day 2, retail investors continue to drive demand

The company has set the price band at ₹413-435. The IPO, worth ₹3,500 crore, includes a fresh issue of ₹2,500 crore and an offer for sale worth ₹1,000 crore by promoter Project Ballet Bangalore Holdings Pvt Ltd

Brookfield Asset Management-backed Schloss Bangalore saw an overall subscription of 17 per cent on its second day. The luxury hospitality company has The Leela Palaces, The Leela Hotels, and The Leela Resorts under its portfolio. While retail Investors’ portion was subscribed 41 per cent, the quota for qualified institutional buyers and non-institutional Investors (NIIs) saw 11 per cent each.

The company plans to use the money raised from the public issue to pay loans worth ₹2,300 crore. The remaining funds will be allocated for general corporate purposes.

The company has set the price band at ₹413-435. The IPO, worth ₹3,500 crore, includes a fresh issue of ₹2,500 crore and an offer for sale (OFS) worth ₹1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd. The IPO will close on May 28

The hospitality sector has already witnessed a lot of activity since last year with IPOs from Juniper Hotels and Ventive Hospitality. This year players such as Prestige Hotel Ventures and Brigade Hotel Ventures are also looking to go public.

The Leela brand currently operates a total of 3,553 keys across 13 hotels including 5 owned properties, 7 hotels under its managed portfolio and 1 franchised hotel operated by a third-party owner. The company also plans to expand its footprint with seven new properties in destinations such as Srinagar, Agra, and Ayodhya by 2028.

(Report filed by BL intern Nethra Sailesh)

Published on May 27, 2025