Schloss Bangalore IPO Day 1: Check subscription status, GMP, allotment date & more

The initial public offering (IPO) of Schloss Bangalore was off to day muted bidding from the investors during the first day of the bidding process from all the categories of the investors. The issue, which kicked off on Monday, May 26, shall close for bidding on Wednesday, May 28.

Schloss Bangalore is selling its shares in the price band of Rs 413-435 apiece. Investors can apply for a minimum of 34 shares and its multiples thereafter. It is looking to raise Rs 3,500 crore via IPO, which includes a fresh share sale of Rs 2,500 crore and offer-for-sale of up to 2,29,88,505 equity shares worth Rs 1,000 crore.

According to the data, the investors made bids for 24,16,720 equity shares, or only 5 per cent, compared to the 4,66,10,169 equity shares offered for the subscription by 2.55 pm on Monday, May 26, 2025. The bidding for the issue shall continue for three-days.

The allocation for retail investors was subscribed 16 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of only two per cent. However, the quota set aside for qualified institutional bidders (QIBs) was booked merely three per cent as of the same time.

Brookfield-backed Schloss Bangalore, established in March 2019, is a luxury hospitality company operating under 'The Leela' brand in India. It owns, operates, manages, and develops luxury hotels and resorts, offering premier accommodations and personalised services inspired by Indian hospitality.

The grey market premium (GMP) of Schloss Bangalore has remained seen a correction amid the muted bidding for the issue. Last heard, the company was commanding a premium of Rs 13-15 per share in the unofficial market, suggesting a 3-4 per cent listing gains for the investors. The GMP stood around Rs 20 before the issue kicked-off.

Analysts mostly have a positive view on this issue. They see rising demand for luxury hospitality, strong parentage of Brookfield, strategic locations, plans to reduce debts and expansion plans overseas as key positives. However, Richly priced issues, dependence on select prosperities for major revenue share, just turned profitable this year are the major concerns for the IPO.

Schloss Bangalore is a marquee luxury hospitality player operating under The Leela brand, with 13 premium properties spread across key business and leisure destinations in India. Backed by global asset manager Brookfield Group, the company benefits from strong access to capital, international expertise, and long-term operational stability, said Mahesh Ojha, AVP Research at Hensex Securities.

"The company posted a turnaround in FY25 recovering from prior years’ losses primarily driven by high finance costs. With an EV/Ebitda multiple of 26.3 times at the upper price band (post-issue capital) and promising growth avenues, we recommend ‘subscribe' from a long-term value creation perspective," he said.

"While valuations appear stretched with an EV/Ebitda of 57 times , the company’s strong parentage, mission-critical infrastructure, and focus on clean energy transition justify a ‘subscribe for long-term' view," he said.

For the financial year ended on March 31, 2025, the company reported a net profit of Rs 47.66 crore with a revenue of Rs 1,406.56 crore. The company clocked a net loss of Rs 2.13 crore with a revenue of Rs 1,226.50 crore for the fiscal year 2023-24. The market capitalization of Leela Hotels IPO stands at Rs 10,155.36 crore.

Schloss Bangalore has raised Rs 1,575 crore via anchor book by allocating 3.62 crore equity shares to anchor investors at a price of Rs 435 apiece. It has reserved 75 per cent of the net issue for the qualified institutional bidders (QIBs), while non-instructional investors (NIIs) will have 15 per cent of the allocation in the issue. Retail investors will have 10 per cent for the allocation.

The Schloss Bangalore IPO is a long-term bet on the formalization and premiumization of India’s travel and hospitality sector. Investors with a patient outlook and appetite for high-quality consumption plays should consider subscribing to the issue, said Gaurav Garg from Lemonn Markets Desk. "The company deleverages and may be well-positioned to benefit from compounding gains in a high-margin business," he said.

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, SBI Capital Markets are the book running lead managers of the Leela Hotels IPO, while Kfin Technologies is the registrar for the issue.