Leela Palaces parent firm Schloss Bangalore IPO subscribed 6% on day 1

New Delhi: The initial public offer of Schloss Bangalore, which operates Leela Palaces Hotels and Resorts, subscribed 6 per cent on the first day of bidding on Monday.

The initial share sale received bids for 28,75,176 shares against 4,66,10,169 shares on offer, as per NSE data.

The category for retail individual investors (RIIs) received 20 per cent subscriptions while the quota for non-institutional investors subscribed 3 per cent. The portion for qualified institutional buyers (QIBs) received a 3 per cent subscription.

Schloss Bangalore Ltd has garnered Rs 1,575 crore from anchor investors.

The issue, with a price band of Rs 413-435 per share, will conclude on May 28.

The company's Rs 3,500-crore IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) of stocks valued at Rs 1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.

Schloss Bangalore, which is backed by Brookfield Asset Management, plans to use the proceeds of the fresh issue to pay loans availed by the company and its subsidiaries and for general corporate purposes.

Schloss Bangalore, known for its luxurious hotels and resorts under "The Leela" brand, had a portfolio of 3,382 keys across 12 operational hotels as of May 31, 2024. Its portfolio includes The Leela Palaces, The Leela Hotels, and The Leela Resorts, located across 10 destinations in the country.

The IPO is being managed by a consortium of 11 merchant bankers -- JM Financial, BofA Securities India, Morgan Stanley India Company, JP Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Securities, ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.