Schloss Bangalore IPO opens on May 26 - Latest IPO GMP, Dates, Lot Size & Share Price
K N Mishra
22/May/2025

What's covered under the Article:
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Schloss Bangalore IPO opens on May 26, 2025, with a total issue size of ₹3,500 Cr and a price band of ₹413–₹435 per share.
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The IPO comprises a fresh issue of ₹2,500 Cr and an offer for sale worth ₹1,000 Cr, with listing expected on June 2, 2025.
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Despite strong branding and revenue growth, valuation metrics suggest avoiding IPO for listing gains due to zero GMP.
The highly anticipated Schloss Bangalore IPO is scheduled to open for subscription on May 26, 2025, and will close on May 28, 2025. This initial public offering amounts to a substantial ₹3,500 crore and is structured as a Book Built Issue. The issue consists of a Fresh Issue of approximately 574.71 lakh shares worth ₹2,500 crore and an Offer for Sale of 229.88 lakh shares totaling ₹1,000 crore. The shares will be listed on both the BSE and NSE, with a tentative listing date around June 2, 2025.
Schloss Bangalore Limited is well known for owning, operating, managing, and developing luxury hotels and resorts under the iconic “The Leela” brand. The brand’s global reputation is strong, having been ranked #1 among the world’s best hospitality brands in 2020 and 2021, and maintaining a spot among the top three hospitality brands in 2023 and 2024 as per the Travel + Leisure World’s Best Awards Surveys. This reflects the brand’s premium positioning and commitment to luxury hospitality.
The IPO price band is set between ₹413 and ₹435 per equity share, with a minimum lot size of 34 shares. Retail investors must invest a minimum of approximately ₹14,790, while High-Net-Worth Individuals (HNIs) need to apply for at least 14 lots, which translates to 476 shares costing around ₹2,07,060. The company’s estimated market capitalization at the upper price band stands at ₹14,527.16 crore.
Among the prominent Book Running Lead Managers managing this IPO are reputed names such as JM Financial Limited, BofA Securities India Limited, Morgan Stanley India Company Private Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, and others. KFin Technologies Limited is the registrar for this issue, ensuring smooth processing of subscriptions and allotments.
An important aspect for investors to note is the Grey Market Premium (GMP) of Schloss Bangalore IPO, which currently stands at ₹0. This means there are no anticipated listing gains based on the current demand-supply dynamics in the unorganized grey market. GMP often reflects market sentiment, but in this case, the absence of any premium suggests cautious investor expectations, likely influenced by the IPO’s valuation and financial performance. It is advisable to treat GMP data for educational purposes only and not as a definitive indicator of post-listing price movement.
The IPO allotment process will be completed by May 29, 2025, and investors can check their allotment status online via the registrar’s official website by entering their application number, PAN, or DP Client ID. This user-friendly process helps investors stay updated on their subscription outcome without hassle.
Turning to the company’s financials, Schloss Bangalore has demonstrated consistent growth in revenues over recent years. The company’s revenue from operations for the fiscal year ending March 31, 2025, stood at ₹14,065.56 million, up from ₹12,265 million in FY24, ₹9,032.67 million in FY23, and ₹4,159.49 million in FY22. This steady increase in top-line performance reflects the recovery and expansion of its luxury hotel business.
EBITDA figures also show robust improvement, with ₹7,001.68 million reported for FY25, compared to ₹6,000.26 million in FY24, ₹4,236.29 million in FY23, and ₹877.19 million in FY22. Profit after tax (PAT) has moved into positive territory in FY25 at ₹476.58 million, a significant turnaround from losses in prior years (-₹21.27 million in FY24, -₹616.79 million in FY23, and -₹3,198.29 million in FY22). This marks a notable recovery for the company post-pandemic and indicates improved operational efficiency.
Despite these positive trends, the IPO valuation metrics suggest the issue is priced on the higher side. The company reports a pre-issue Earnings Per Share (EPS) of ₹1.97 and a post-issue EPS of ₹1.43 for FY24. Correspondingly, the pre-issue Price-to-Earnings (P/E) ratio is 220.18x and the post-issue P/E ratio rises to 304.82x, which is substantially higher than the industry average P/E ratio of 95x. Additionally, the company’s Return on Equity (ROE) and Return on Net Worth (RoNW) for FY24 stand modestly at 1.32%. These valuation and profitability ratios indicate that investors are paying a premium, which may not reflect immediate returns.
The IPO proceeds will be primarily used for repayment or prepayment of certain outstanding borrowings. About ₹23,000 million will go towards reducing debt—₹11,025 million by the company itself and ₹11,975 million by certain wholly owned subsidiaries. The balance funds will support general corporate purposes, strengthening the company’s balance sheet and financial health.
The promoters behind Schloss Bangalore include several investment holdings based in DIFC, such as Project Ballet Bangalore Holdings (DIFC) Pvt Ltd and others tied to various locations like Chennai, Gandhinagar, and Udaipur, reflecting a well-structured ownership base.
Given the current financials, IPO structure, and grey market premium trends showing zero listing gains, potential investors should approach this IPO with caution. While The Leela brand's strong global recognition is a key positive, the high valuation multiples and modest profitability metrics suggest limited upside in the immediate post-listing phase.
In summary, the Schloss Bangalore IPO is a significant offering in the luxury hospitality sector in India, providing investors an opportunity to participate in a premium brand’s growth story. However, the valuation indicates that it is fully priced, with no expected listing gains based on current market sentiment. Investors keen on the long-term luxury hospitality story may consider subscribing but should weigh valuation carefully against their investment horizon and risk appetite.
As the IPO subscription window opens on May 26, 2025, and closes on May 28, 2025, investors can use the easy online allotment status checking system post-application to stay updated. The shares are expected to list on the BSE and NSE on June 2, 2025.
With a robust legacy under “The Leela” brand and improving financials, Schloss Bangalore IPO represents a strategic investment in India’s luxury hotel industry, albeit at a premium valuation that demands prudent investor consideration.
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