Schloss Bangalore Limited, a leading luxury hotel operator, owns, operates, manages, and develops premium hotels and resorts under the prestigious “The Leela” brand. The Leela brand earned accolades as the #1 hospitality brand globally in 2020 and 2021, and ranked among the top three worldwide in 2023 and 2024 according to the Travel + Leisure World’s Best Awards Surveys.

IPO Details:

The company has launched a Book Built Issue IPO of ₹3,500 Crores, comprising a Fresh Issue of 574.71 lakh shares worth ₹2,500 Crores and an Offer for Sale (OFS) of 229.88 lakh shares worth ₹1,000 Crores.

• Subscription Period: May 26, 2025 – May 28, 2025

• Price Band: ₹413 to ₹435 per equity share

• Lot Size: 34 shares

• Minimum Investment: ₹14,790 for retail investors (1 lot), ₹2,07,060 for HNIs (14 lots)

• Listing Date: Tentatively June 2, 2025 on BSE & NSE

• Market Capitalization: At upper band price of ₹435 per share, market cap stands at approximately ₹14,527.16 Crores.

Subscription Status and Grey Market Premium (GMP):

As of the morning of the last subscription day (May 28, 2025), the IPO was subscribed 0.19 times, indicating modest investor interest. The Grey Market Premium for Schloss Bangalore IPO is ₹0, reflecting no speculative listing gains expected based on current demand and company financials. The GMP is for informational purposes and not a reliable indicator of final listing price.

Anchor Investors:

Schloss Bangalore successfully raised about ₹1,575 Crores from anchor investors at ₹435 per share, allotting 2.62 crore equity shares from the Qualified Institutional Buyers portion. Anchor participation indicates institutional confidence, yet the overall IPO subscription is low.

Company Financial Performance:

• Revenue from operations has shown consistent growth:

  • FY2022: ₹4,159.49 Million

  • FY2023: ₹9,032.67 Million

  • FY2024: ₹12,265.00 Million

  • FY2025 (period ended March 31): ₹14,065.56 Million

• EBITDA increased substantially over the years:

  • FY2022: ₹877.19 Million

  • FY2023: ₹4,236.29 Million

  • FY2024: ₹6,000.26 Million

  • FY2025: ₹7,001.68 Million

• Profit After Tax (PAT) turned positive recently after years of losses:

  • FY2022: -₹3,198.29 Million

  • FY2023: -₹616.79 Million

  • FY2024: -₹21.27 Million

  • FY2025: ₹476.58 Million

Valuation Metrics:

• Pre-issue Earnings Per Share (EPS): ₹1.97

• Post-issue EPS: ₹1.43

• Pre-issue Price-to-Earnings (P/E) ratio: 220.18x

• Post-issue P/E ratio: 304.82x

• Industry P/E average: 95x

• Return on Equity (ROE) for FY24: 1.32%

The valuation is on the higher side compared to industry averages, indicating the IPO is fully priced.

IPO Objectives:

Proceeds from the IPO will be primarily used for:

1. Repayment and prepayment of borrowings and accrued interest amounting to ₹23,000 Million, including borrowings of the company and its subsidiaries like Schloss Chanakya, Schloss Chennai, Schloss Udaipur, and TPRPL.

2. General corporate purposes.

How to Check Allotment Status:

Allotment will be finalized by May 29, 2025, and can be checked on the registrar’s website by:

• Selecting Schloss Bangalore IPO from the IPO list

• Entering application number, PAN, or DP Client ID

• Submitting details to see the allotment result

IPO Review & Recommendation:

Schloss Bangalore, operating under the luxurious and globally acclaimed Leela brand, presents a strong growth story in luxury hospitality. The improving financials, especially turning PAT positive, show promising operational turnaround. However, the IPO is priced at a premium with a very high P/E ratio compared to the industry average, which limits potential listing gains. The Grey Market Premium (GMP) at zero indicates no expected listing gains, reinforcing the fully priced nature of the IPO.

Given the current subscription levels and valuation, investors should exercise caution and may consider avoiding this IPO solely for listing gains. Long-term investors interested in the luxury hospitality sector and confident in the brand’s premium positioning might evaluate based on their risk appetite and investment horizon.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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