Leela Hotels

Leela Hotels ₹3,500 Cr IPO Opens May 26: Price Band, Lot Size & Key Details

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Schloss Bangalore, the operator of Leela Hotels IPO, has set its much-awaited $500-million IPO for May 26, 2025, in India. The company is making this IPO to support its expansion, manage debt and further improve its position as a leader in luxury hospitality.

How an IPO is Organized and How Long it Takes

Trading IPO will continue between May 26th & May 28th, 2025. The offer includes ₹2,500 crore in fresh issue and ₹1,000 crore through an Offer for Sale (OFS), with ₹3,500 crore as the overall size. The range the shares are offered within is ₹413 to ₹435 per unit and each lot must have at least 34 shares which means you need to invest at least ₹14,790 at the highest price band.

Important dates are:

  • May 29: Finalisation of the shares assigned
  • On May 30, we process credits for shares and refunds.
  • Wednesday June 2 will see the start of trading on BSE and NSE.

Why does a company choose to go public?

  • The fresh capital will mainly be used for two purposes.
  • The company will use ₹2,300 crore to settle the loans it and its subsidiaries have right now.
  • Up to 25% of the money can be utilized for general company expenses, which enables the company to meet different goals and adapt to new opportunities.

Company Overview

Since 1986, Schloss Bangalore hasmanaged The Leela Palaces, Hotels and Resorts which stands out as a top luxury hospitality brand in India. The company runs and owns 13 hotels in India with 3,553 rooms and has a presence in 10 major locations such as Delhi, Bengaluru and Chennai.

In all, there were 13 hotels included:

  • 5 businesses are controlled and managed by local people.
  • Seven properties are managed by the hotel.
  • There is a franchise ownership for 1.

How Well the Organization Performs Financially & Gains Efficiency

  • Leela Hotels announced their findings for FY25.
  • On average, people pay ₹16,409 for a room.
  • For every available room, revenue was ₹10,696.
  • The hotel was booked to 65% of its capacity.

ARR and RevPAR for its properties in the portfolio were 30% and 20% greater, respectively, than what was seen in similar properties in the regions. The figures point to the company’s top quality and success in growing using minimal assets.

Purposes of Expansion

The company expects to increase its room count by 678, showing that capacity will rise nearly 19.08% to 2028. This extension is expected because of the predicted expansion in luxury hospitality in India, mainly:

  • The goal- India’s GDP $5.1 trillion within 2027.
  • There is a projected rise in high-income households from 24% in 2018 to 56% by the year 2030, according to Chetti.
  • These economic indicators give Leela Hotels the basis to maintain its share in the market and raise shareholder value.

Building and Defending Your Market Position: What Gives You the Edge

The Leela brand is easy to remember and most international and most domestic travelers prefer to stay in the areas in which the hotels are located. The advantage of being based in this location allows Wyndham to keep their properties filled and charge top prices.

Moreover, being present in many business and leisure areas helps the company enjoy several income sources and lowers their dependence on one market segment.

Conclusion

The company’s ₹3,500-crore IPO plays an important role in helping Leela Hotels strengthen its finances, increase where and how it operates and profit from a rising preference for premium hotel accommodation in India. Having a polished brand, growing across India and effective financial decisions gives the company a strong place to benefit from India’s expected growth in the luxury travel industry.

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