Schloss Bangalore IPO Day 1: Leela Hotels Parent Targets Rs.3,500 Cr; Check GMP, Subscription, Dates & More

The Schloss Bangalore IPO, the parent company of India's luxury Leela Hotels brand, has opened for public bidding today, May 26 The issue will remain open for subscription until May 28 and is aiming to raise Rs. 3,500 crore through a fresh issue of shares.

Schloss Bangalore IPO Price Band, Lot Size

The price band The Schloss Bangalore IPO is fixed at Rs. 413 to Rs.435 per share. The Schloss Bangalore IPO is a book-built issue worth Rs. 3500 crore.

In order to apply for the IPO, the minimum required lot size is 34 shares, which means the retail investors need to invest a minimum of Rs.14,042 at the lower end and approximately Rs. 14,790 at the upper band.

Schloss Bangalore IPO GMP Today

Grey Market Premium Indicates Modest Listing Gains As of May 26th, the latest GMP for the Schloss Bangalore IPO stands at Rs. 16 per share as per investor gain data. This means that the IPO will likely have a listing price of Rs. 451, which includes the sum of the issue price of Rs. 435 together with thes. 16 GMP, providing a 3.68% gain on listing day.

Leela Hotels IPO Subscription Status on Day 1

As of May 26 midday, the Schloss Bangalore (Leela Hotels) IPO has seen a muted response on Day 1 of bidding. As per data from the Chittorgarh website, the overall subscription stands at just 0.05 times. In the retail category, the IPO has been subscribed to 0.16 times. Meanwhile, the Qualified Institutional Buyers (QIB) segment has seen a subscription of only 0.03 times, and the Non-Institutional Investors (NII) category has clocked in at 0.02 times. With two days of bidding still remaining, stronger participation from investors is expected to pick up momentum.

Should You Subscribe to the Schloss Bangalore IPO?

Market experts are cautiously optimistic about the IPO. According to Gaurav Garg from Lemonn Markets, "Schloss is well-positioned to benefit from the ongoing premiumisation and formalisation of India's travel and hospitality sector. The company's valuation at 31x FY25 EV/EBITDA is considered attractive, as it's about 15% lower than the sector average.

For investors looking for long-term exposure to luxury consumption themes, Schloss offers a compelling entry point, especially when compared to listed peers like Chalet Hotels and Indian Hotels, which trade at higher multiples."

"At the upper price band of ₹435, Schloss Bangalore is valued at a P/E ratio of 266.8x, P/S ratio of 11.2x, and EV/EBITDA of 30x, with a market cap of approximately ₹14,527 crore post-issue. The IPO is fairly valued considering the company's market position, brand strength, and future growth potential in India's luxury travel and tourism sector," said the Anand Rathi Securities report, and they have given a "Subscribe - Long Term" rating to the Schloss Bangalore IPO.

About Schloss Bangalore Limited

Established in March 2019, Schloss Bangalore Limited is a premium hospitality company based in Bengaluru, operating under "The Leela" brand. The company came into existence after Brookfield Asset Management acquired The Leela Palace Bengaluru and built a scalable luxury hotel platform. Today, Schloss operates 13 high-end hotels across 11 cities in India with over 3,500 rooms managed through a mix of owned, franchised, and managed models.

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