The initial public offering (IPO) of Leela Hotels opened for bidding on Monday, May 26, 2025. The company aims to raise Rs 3,500 crore through this issue. The IPO will remain open for three days and will close on May 28, 2025.
Out of the total Rs 3,500 crore, Leela Hotels plans to raise Rs 2,500 crore by issuing 5.75 crore fresh equity shares. An additional Rs 1,000 crore will be raised through the offer for sale (OFS) route, where existing shareholders will sell 2.30 crore shares.
The price band for Leela Hotels IPO has been fixed between Rs 413 and Rs 435 per share.
Retail investors need to apply for a minimum of 34 shares. At the lower end of the price band, this comes to Rs 14,042. If one applies at the upper end of the band (Rs 435), the minimum investment required will be Rs 14,790.
For small non-institutional investors, the minimum application is 14 lots or 476 shares, which will cost Rs 2,07,060. Large non-institutional investors are required to bid for at least 68 lots or 2,312 shares, which adds up to Rs 10,05,720.
LATEST GMP
Ahead of the IPO opening, Leela Hotels raised Rs 1,575 crore from 47 anchor investors. These shares were allotted at the upper end of the price band, which is Rs 435 per share.
In the grey market, the premium for the Leela Hotels IPO has slightly fallen. The latest grey market premium (GMP), updated at 6:54 am on May 26, stands at Rs 13.
This suggests an estimated listing price of Rs 448 per share (Rs 435 issue price + Rs 13 GMP). The expected gain per share is around 2.99%.
EXPERT VIEW: SUBSCRIBE OR SKIP?
Brokerage firm Bajaj Broking has advised investors to subscribe to the IPO, but with a long-term view in mind.
“We recommend to subscribe the IPO with a long-term perspective,” said Bajaj Broking.
The firm also said that the IPO is more of a bet on the company’s turnaround and its future potential rather than its current financial performance.
“Investors should be cautious, recognizing that this IPO is largely a bet on a turnaround and brand-led growth story, rather than a value play based on existing fundamentals,” Bajaj Broking added.
The share allotment for the IPO is likely to be finalised on May 29, 2025.
The shares of Leela Hotels are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on June 2, 2025. However, this date is tentative and subject to final confirmation.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)