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.
