Leela Hotels IPO Subscribed 0.49 Times by Start of Day 3

The Leela Hotels (Schloss Bangalore) IPO received a low response from investors, with a total subscription of 0.49x by the start of Day 3. The company is offering shares at a price band of Rs 413 to Rs 435 per share, with a minimum lot size of 34 shares. The Rs 3,500 crore IPO consists of Rs 2,500 crore of a fresh issue and Rs 1,000 offer for sale. Stay tuned for the latest updates on the Leela Hotels IPO subscription status for Day 3.

The Leela Hotels IPO Subscription Status - Day 3

As of Day 3, the Leela Hotels IPO saw an overall subscription of 0.87x. The QIB portion received bids for 1.29x, while NIIs subscribed at 0.24x. The Retail Investor segment saw a subscription of 0.55x by the end of the day.

Last updated: 12:33 PM, Wednesday, 28 May 2025

The Leela Hotels IPO Subscription Status - Day 2

By the close of Day 2, the Leela Hotels IPO had been subscribed 0.17 times overall. The Retail Investor portion reached 0.43x, while NIIs and QIBs saw subscription levels of 0.11x and 0.12x, respectively.

The Leela Hotels IPO Subscription Status - Day 1

By the end of Day 1, the Leela Hotels IPO had an overall subscription of 0.07x. The retail category was subscribed at 0.21x, while Non-Institutional Investors (NIIs) subscribed at 0.03x, and Qualified Institutional Buyers (QIBs) subscribed at 0.03x.

Company Overview of The Leela Hotels IPO 

Founded in 1986 by the Late Captain C.P. Krishnan Nair, the brand ‘The Leela’ is built on the Indian belief of “Atithi Devo Bhava” (Guest is God), and is known for delivering world-class hospitality experiences with an Indian touch. Since 2021, the Leela brand and its properties have earned over 250 industry awards, underscoring its excellence and reputation.

The company’s current portfolio includes 13 luxury hotels with a total of 3,553 keys, making us one of the largest players in India’s luxury hospitality segment. This includes five wholly owned properties, seven managed under hotel management contracts, and one franchised hotel. Strategically located across 10 major business and leisure destinations, their properties cover over 80% of international and 59% of domestic air traffic routes.

Designed as “modern palaces,” the hotels combine traditional Indian architecture with modern amenities. Flagship properties in Bengaluru, Chennai, and New Delhi are recognized as hospitality landmarks, where each hotel offers luxurious stays, curated experiences, wellness services, and award-winning dining options.

The Leela Hotels are now expanding their footprint with seven new projects, adding around 678 keys by 2028. These include properties in Agra, Srinagar, Ranthambore, Bandhavgarh, and Mumbai. With this, they aim to diversify into emerging travel segments such as wildlife, spiritual, and heritage tourism, reinforcing their commitment to growth and innovation in luxury hospitality.

Strengths of The Leela Hotels IPO

• Leading Luxury Brand with Global Recognition:
  The Leela brand is globally recognized for its excellence in luxury hospitality, with over 250 awards and top rankings by Travel + Leisure and Conde Nast. With a strong heritage rooted in Indian hospitality and high service standards, it boasts industry-leading metrics like NPS and EBITDA margins, outperforming peers in both guest satisfaction and profitability.
  
  

• Strategic Owned Hotels in High-Barrier Markets:
  Schloss owns five iconic hotels across major Indian cities, built as “modern palaces” in locations with limited land availability and long development timelines. These properties consistently outperform industry averages in ARR and RevPAR, highlighting their premium positioning and market leadership.
  
  

• Diverse Luxury Ecosystem and Revenue Mix:
  The company’s hotels offer a full luxury experience with top-tier dining, wellness, and event spaces, catering to leisure, business, and group travelers. This ecosystem supports strong non-room revenue (over 50%) and consistently high TRevPAR across the portfolio.
  
  

• Proven Operational Efficiency Through Asset Management:
  An active owner-operator approach drives asset upgrades and operational optimization, boosting ARR and RevPAR across properties. Investments in refurbishments, cost control, and sustainability initiatives have delivered strong returns while maintaining luxury standards and reducing environmental impact.
  

• Experienced Leadership Team:
  Led by a seasoned team with decades of experience in hospitality and asset management, Schloss’s management has successfully navigated industry cycles and driven consistent growth in performance metrics across its portfolio.
  

• Strong Backing by Brookfield:
  Schloss is promoted by Brookfield, a global asset manager with over $1 trillion in AUM and deep expertise in real estate and hospitality. Brookfield's strong presence in India, development experience, and governance standards provide strategic support and capital discipline for long-term growth.

Risks of The Leela Hotels IPO 

• Brand reputation risk:
  The success of Leela Hotels is closely tied to the reputation of “The Leela” brand, which is critical for attracting guests and third-party hotel owners. Any decline in service quality, guest experience, or misuse of the brand by franchisees or partners can lead to reputational damage.

• Revenue concentration risk in owned hotels:
  Over 90% of the company’s income comes from five owned hotels, making it vulnerable to regional disruptions. Any adverse event in these locations could significantly impact overall performance

• High debt levels and capital intensity:
  As of March 31, 2025, the company had substantial borrowings of Rs. 39,087.46 million, with finance costs accounting for over 32% of total income. Operating in a capital-intensive industry, Schloss requires ongoing funding for renovations and expansions, which may strain cash flows and limit financial flexibility.
  

• Renovations risk and operational disruptions:
  Renovation and refurbishment of existing hotels are essential but carry risks of delays, cost overruns, and temporary disruptions in operations. Although past upgrades have not caused major issues, future projects may lead to income loss, especially if third-party contractors fail to meet quality or timelines.

• Construction risk in new hotel developments:
  The company’s expansion into new locations through hotel construction projects, such as The Leela Ayodhya and The Leela Palace Agra, involves risks like regulatory delays, cost overruns, and contractor dependency. A few issues may lead to budget increases or project delays.

The Leela Hotels IPO Financial Overview

The financial performance of the company over the three-year period ending March 31, 2025, shows a strong and consistent improvement. Revenue from operations increased steadily from Rs. 8,600.58 crore in FY 2023 to Rs. 11,714.53 crore in FY 2024 and further to Rs. 13,005.73 crore in FY 2025, indicating healthy business growth. 

The company successfully turned around its profitability, moving from a net loss of Rs. 616.79 crore in FY 2023 to a marginal loss of Rs. 21.27 crore in FY 2024, and finally achieving a net profit of Rs. 476.58 crore in FY 2025. Correspondingly, the profit margin improved from -6.83% in FY 2023 to 3.39% in FY 2025. 

Operational efficiency also showed positive momentum, with EBITDA rising from Rs. 4,236.29 crore in FY 2023 to Rs. 7,001.68 crore in FY 2025. The EBITDA margin also improved consistently from 46.90% in FY 2023 to 49.78% in FY 2025, reflecting strong control over operating costs and better profitability at the core business level.

The Leela Hotels IPO Details

• IPO Date: May 26, 2025 to May 28, 2025

• Issue Price: Rs 413 to Rs 435 per share

• Lot Size: 34 shares

• Total Issue Size: 8,04,59,769 shares (amounting to Rs. 3,500 Cr)

• Fresh Issue: 5,74,71,264 shares (amounting to Rs. 2,500 Cr)

• Offer for sale: 2,29,88,505 shares (amounting to Rs 1,000 Cr)

• Allotment Date: May 29, 2025

• Listing Date: June 2, 2025

How to Apply for The Leela Hotels IPO

• Visit the Rupeezy app.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per the lot size. 

• Submit to complete the order.