The much-awaited Leela Hotels IPO finally opened for subscription today, May 26. The company behind the iconic Indian luxury hotel brand, Schloss Bangalore, is looking to raise ₹3,500 crore through this public offer. But despite the hype, the response on Day 1 hasn’t been as exciting as expected — especially from High Net-Worth Individuals (HNIs), who seem to be keeping their distance for now.
What’s on Offer?
The IPO will remain open from May 26 to May 28, giving retail and institutional investors a three-day window to participate. The price band has been fixed at ₹413 to ₹435 per share, and the minimum lot size is 34 shares. Investors can apply in multiples of this lot.
While the brand name ‘Leela’ is synonymous with premium hospitality and strong customer recall, that hasn’t been enough to pull big-ticket investors on Day 1.
HNIs Stay Cautious
Market observers noted a sharp drop in HNI participation, with the number of applications significantly lower than seen in recent big IPOs. This could be due to concerns about valuation, recent volatility in the secondary market, or simply a wait-and-watch approach.
Experts believe HNIs are becoming more selective and prefer waiting until they see stronger grey market signals or retail momentum before jumping in.
What Experts Are Saying
According to analysts, the company’s strong brand and market presence are its key strengths. However, the issue size and pricing are on the higher side, which may be causing some hesitation.
“While Leela has premium appeal, the valuation doesn’t leave much room for listing gains,” said a market watcher.
Despite the cautious start, analysts are watching Day 2 and Day 3 closely. Historically, many IPOs have seen slow beginnings and strong finishes, especially when retail and institutional interest pick up toward the end.
Should You Consider It?
If you’re thinking of applying for the Leela Hotels IPO, here are a few quick points to keep in mind:
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Strong brand in the luxury hotel space
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Large issue size of ₹3,500 crore
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Price band ₹413–₹435 per share
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Low HNI participation on Day 1
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Subscription closes on May 28
Final Thoughts
The Leela Hotels IPO had a muted start, but that doesn’t always determine the outcome. With two more days to go, the retail and institutional response will be crucial in setting the tone for its listing. Investors are advised to watch the subscription data closely and make an informed call.