Luxury hotel operator Schloss Bangalore, known for managing the iconic “The Leela” brand in India, made a weak entry on Dalal Street today. The company’s shares were listed at a discount of Rs 406.50 on the BSE and opened at Rs 406 on the NSE.
The Leela Hotels IPO was opened for subscription between May 26 and May 28, with the price band set between Rs 413 to Rs 435 per share.
Let’s take a look at the key details of the issue –
IPO Snapshot: What you need to know
Leela Hotels public issue was worth Rs 3,500 crore, split into two parts:
Fresh issue: 5.75 crore shares raising Rs 2,500 crore
Offer for sale (OFS): 2.30 crore shares worth Rs 1,000 crore
Leela Hotel IPO: GMP before the listing
Even before its official debut, Leela Hotels’ IPO in the grey market, where it was commanding a small premium of Rs 2 per share, suggested a potential listing around Rs 437, up by 0.46%.
From Palaces to Portfolios: About the company
Schloss Bangalore, incorporated in March 2019, operates under the prestigious “Leela” banner. With a presence in India’s luxury hospitality space, the group manages 12 opulent properties with over 3,382 rooms across major cities and tourist destinations.
IPO Proceeds: Where the money will go
According to the company’s prospectus, proceeds from the fresh issue will be primarily used to repay or prepay debt, including borrowings of its subsidiaries such as Schloss Chanakya, Schloss Chennai, Schloss Udaipur, and TPRPL.
Apart from this, a portion will also be allocated for general corporate purposes.
Key players behind the issue
The key players behind the issue include Investment bankers such as JM Financial, Morgan Stanley, BofA Securities, Kotak, Axis Capital, Citi, and SBI Caps. KFin Technologies served as the registrar for the issue.