Schloss Bangalore Ltd, operating under the renowned “The Leela” luxury hotel brand, is set to launch its ₹3,500 crore IPO on May 26, 2025. The company owns, manages, and develops 13 luxury hotels with 3,553 keys across India, making it one of the country’s largest luxury hospitality players. Backed by Brookfield Asset Management, Schloss Bangalore has a strong presence in key business and leisure destinations, blending Indian heritage with modern hospitality. The company plans to use a major portion of IPO proceeds to reduce debt, strengthening its balance sheet. Its strategic expansion into branded residences and club operations supports future growth.
₹5
₹435
₹406
Expert Opinions
Market sentiment for the Leela Hotels IPO is neutral to cautiously optimistic, with institutional investors showing interest due to the company’s luxury brand and sector recovery, while retail sentiment remains guarded. The company’s strengths include a portfolio of 13 high-end hotels, strong brand equity, and backing from Brookfield Asset Management, supporting operational stability and expansion. Risks persist in the form of ongoing losses, high debt, and intense competition.
For FY2025, the company reported an EPS of ₹1.97 (Basic), Return on Net Worth (RoNW) of 1.32%, and Net Asset Value (NAV) of ₹148.88, reflecting modest profitability and a recovering balance sheet. Considering the Leela Hotels IPO, long-term investment prospects depend on effective debt reduction, successful execution of expansion plans, and sustained improvement in margins. Investors should weigh the brand’s growth potential against financial risks and sector volatility before making long-term commitments.
Investor Considerations
Leela Hotels IPO has demonstrated a notable recovery, with FY2025 revenue reaching ₹1,406.56 crore and profit after tax improving to ₹47.66 crore, reflecting a turnaround from previous losses and strengthening fundamentals. Leela Hotels IPO highlights this transformation as the Indian luxury hospitality sector is poised for robust growth, driven by rising domestic and international travel and premiumization trends. For FY2025, the company reports an EBITDA margin of 49.78%, PAT margin of 3.39%, and a debt to equity ratio of 1.07, indicating improved operational efficiency and more balanced leverage.
Growth prospects are supported by expansion plans and Brookfield’s backing, but risks remain from high debt, sector competition, and the cyclical nature of hospitality demand. Short-term investors may see volatility, while long-term gains depend on sustained profitability, successful debt reduction, and continued sector momentum.
| Date | GMP | Trend |
|---|---|---|
| 31 May 2025 11.36 | ₹5 | --- |
| 30 May 2025 11.47 | ₹5 | --- |
| 29 May 2025 11.08 | ₹5 | Up |
| 28 May 2025 10.51 | ₹00 | Down |
| 27 May 2025 19.10 | ₹5 | Down |
| 26 May 2025 17.07 | ₹13 | Down |
| 25 May 2025 11.31 | ₹20 | --- |
| 24 May 2025 10.56 | ₹20 | Up |
| 23 May 2025 10.53 | ₹15 | --- |
| 22 May 2025 18.55 | ₹15 | Up |
| 21 May 2025 18.35 | ₹10 | Up |
| 20 May 2025 10.53 | ₹00 | --- |
| 19 May 2025 10.49 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Leela Hotels’ listing sentiment, though missed the magnitude. While the GMP of ₹0 suggested weak market enthusiasm with a flat listing, the stock actually listed at a discount of 6.67%. With a prediction error of 6.67%, the GMP correctly indicated negative market sentiment but failed to capture the full extent of the downside, demonstrating partial reliability as a sentiment indicator in this case.
Leela Hotels IPO Current GMP is ₹00.
Leela Hotels IPO Expected Returns is 0.00%.
Leela Hotels IPO estimated listing price is ₹435.