BAJAJ FINSERV DIRECT LIMITED
IPO-Insights

Schloss Bangalore Lists at Discount Despite Strong Institutional Interest

Roshani Ballal

Schloss Bangalore, the luxury hospitality firm behind The Leela Hotels, made its stock market debut today but opened below expectations. Despite a decent subscription in the IPO, the company’s shares listed at a discount on both major stock exchanges, reflecting muted investor sentiment and cautious market outlook.

Listing Day Performance

Schloss Bangalore's shares were listed on June 2, 2025, and opened as follows:

  • NSE Listing Price: ₹406 (6.67% discount to issue price)

  • BSE Listing Price: ₹406.50 (6.5% discount to issue price)

  • Issue Price: ₹435 per share

The listing performance was below projections, especially considering the moderate grey market premium (GMP) before debut.

IPO Snapshot and Key Details

The IPO was open for subscription between May 26 and May 28, with the following details:

  • Price Band: ₹413 to ₹435

  • Lot Size: 34 shares

  • Total Issue Size: ₹3,500 Crores

    • ₹2,500 Crores (Fresh Issue)

    • ₹1,000 Crores (Offer-for-Sale)

Subscription Breakdown

Here’s how different investor categories responded during the IPO:

Investor Category

Subscription (x)

Qualified Institutional Buyers (QIBs)

7.46x

Non-Institutional Investors (NIIs)

1.02x

Retail Individual Investors (RIIs)

0.83x

Overall Subscription

4.50x

The above table reflects subscription levels across investor segments, with strong QIB demand offset by weak retail interest.

Company Overview: Schloss Bangalore

  • Headquarters: New Delhi

  • Business: Operates The Leela Palaces, Hotels, and Resorts

  • Portfolio: 12 hotels with 3,382 keys (as of May 31, 2024)

  • Operating Model: Mix of owned and managed properties

Despite a weak listing, Schloss Bangalore remains a prominent player in India’s luxury hospitality sector, offering high-end accommodation across key urban and resort destinations.

Market Sentiment and GMP Insights

  • Grey Market Premium (GMP): ₹2 per share ahead of listing

  • Market Interpretation: Flat GMP suggested subdued demand and cautious sentiment

  • Retail Interest: Lower-than-expected participation signals investor concern amid market volatility and sector competition

Schloss Bangalore's tepid market debut highlights a growing sense of caution among retail investors, despite robust institutional backing. While the company's brand strength and asset base remain noteworthy, the listing underscores the importance of market timing and investor sentiment in IPO outcomes.

Disclaimer

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.

Hi! I’m Roshani Ballal
Financial Content Specialist

Roshani has over 6 years of experience and has honed her skills in performance content marketing in the financial domain. She loves diving into research and has crafted and overviewed creative copies, long-form financial content, engaging blogs, and informative articles. She specialises in delivering user-oriented content and solving problems through various content formats. On the side, Roshani enjoys writing poems-that's how she stays creative when she is not crunching numbers.

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