The luxury hotel industry is about to welcome a new player on the stock exchange, Leela Hotels. The Company behind India’s premium hospitality brand, “The Leela,” is all set to begin trading on Monday, June 2, 2025. If you are wondering whether this IPO is worth your attention, here is everything you need to know.
Leela Hotels IPO Process
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The initial public offering (IPO) of Leela Hotels created a buzz in the market. The company’s share offering was oversubscribed by 4.50 times when the bidding closed on Wednesday. This means investors showed a strong interest, with demand exceeding the availability of shares by more than four times.
Breaking down the subscription numbers further reveals interesting patterns. Qualified Institutional Buyers (QIBs) were the large institutional investors, like mutual funds and insurance companies, who subscribed 7.46 times their allotted portion. Non-institutional investors managed a subscription rate of 1.02 times, while retail individuals achieved an 83% subscription rate.
Leela Hotels Share Allocation And Pricing Details
The company priced its shares between ₹413 and ₹435 per share. Investors could buy shares in lots of 34 equity shares, meaning the minimum investment required was around ₹14,000 to ₹14,800.
The allocation strategies followed standard IPO norms: 75% of shares went to QIBs, 15% to non-institutional investors, and 10% were reserved for retail investors. This structure ensures that different types of investors get fair representation.
On May 29, the company finalised the share allotment. Those lucky enough to receive shares will see them credited to their Demat account today. Unfortunately, investors who didn’t get an allotment will receive their refund.
About Leela Hotels
Schloss Bangalore, the parent company operating under the Leela brand, runs luxury hotels across India. On May 31, 2024, they were managing 3,382 rooms spread across 12 hotels in 10 different cities. Their portfolio includes 3 distinct categories: The Leela Palaces, The Leela Hotels, and The Leela Resorts.
The company’s financial performance tells an impressive growth story. Their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) jumped dramatically from ₹87.72 crore in the financial year 2022 to ₹600.03 crore in the financial year 2024. This represents nearly 7 times the growth in just two years.
What Should Investors Do?
The company also raised ₹1,575 crore from anchor investors, showing institutional confidence in the business model. With India’s luxury hospitality sector showing structural growth, Leela Hotels appears to be positioned to capitalize on this trend.
For investors who received an allotment, holding for the long term seems advisable given the company’s growth trajectory and India’s expanding luxury travel market. Those who missed out might want to wait for potential post-listing price corrections before making an entry. The Monday debut will reveal whether the market segments align with expert predictions or not.
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