Leela Hotels IPO Shares List at ₹406: Market Debut Sees 6.7% Discount

Market Debut Performance

Leela Hotels IPO shares made a muted debut on the stock exchanges on Monday, June 2, opening at a 6.7% discount to their issue price.

• NSE Listing Price: ₹406
• BSE Listing Price: ₹406.50
• IPO Issue Price: ₹435
• Opening Discount: ~6.5%

Despite the sluggish start, Leela Hotels' IPO shares partially recovered during the session, trading at ₹425 by 10:17 AM — a 4.55% gain from the listing price but still 2% below the IPO issue price.

IPO Details and Subscription

The Leela Hotels IPO was open for subscription from May 26 to May 28, priced in the band of ₹413 to ₹435 per share.

• Total Issue Size: ₹3,500 Crore
  • Fresh Issue: ₹2,500 Crore (5.75 Crore shares)
  • Offer for Sale (OFS): ₹1,000 Crore (2.30 Crore shares)

Subscription Breakdown:

• Overall Subscription: 4.72 times
• Retail Investors: 0.87 times
• Non-Institutional Investors (NII): 1.08 times
• Qualified Institutional Buyers (QIBs): 7.82 times

Company Profile: Leela Hotels

Schloss Bangalore operates The Leela brand of luxury hotels in India. The company has positioned itself among the top players in the Indian premium hospitality sector, offering high-end experiences in key metro and leisure locations.

Fund Utilization Strategy

The company intends to utilize the proceeds from the fresh issue for:

• Repayment/Redemption of outstanding borrowings
• General corporate purposes

Summary

Leela Hotels IPO shares began their journey on a softer note with a 6.7% discount but managed to recover a portion of the early losses during the day's session. Backed by a strong QIB response and a robust IPO structure, the company successfully raised ₹3,500 Crore. Despite mixed sentiment on the listing day, Leela Hotels has made a notable entry into the public market, attracting investor attention from institutional circles.