Leela Hotels IPO Day 2 GMP Highlights: Should you subscribe or avoid this Rs 3,500 crore public offer?

Leela Hotels struggled with losses and debt of Rs 5,000 crore after founder Captain Nair’s death in 2014. His sons Vivek and Dinesh Nair tried to revive the hotel business and did not draw a salary for two years, but the company still had to be sold in 2018 due to ongoing defaults.

The Leela chain owns around 20 properties across India. It has 12 hotels operational in cities like Bengaluru, Chennai, Udaipur, Jaipur, Gurugram, Mumbai, Kerala, and Hyderabad.

With Brookfield Asset Management looking to expand the Leela brand globally, and only The Leela Hotel and Palace in Mumbai remain with the original owners.

The Leela Palace chain of hotels was started by Captain CP Krishnan Nair, a retired soldier, in 1986.

Captain Nair named it after his wife — Leela — whom he married in 1950.

Leela Hotels has allocated a minimum of 75% of its net offer to qualified institutional buyers (QIBs), a maximum of 10% to retail investors, and a maximum of 15% to non-institutional investors (NIIs).

The government is accelerating efforts to overhaul the Goods and Services Tax (GST) regime as part of the proposed GST 2.0 reforms, with Finance Minister Nirmala Sitharaman scheduled to meet representatives from India Inc on May 27, two government sources said. The meeting will see key presentations from industry leaders on their expectations and recommendations for the next phase of GST reforms. (Read More)

• Qualified Institutional Buyers (QIBs) -- 0.39
• Non Institutional Investors(NIIS) - - 0.06
• Retail Individual Investors (RIIs) -- 0.33
• Total -- 0.29

The average daily turnover in the cash market has surged to an eight-month high in May, propelled by the recent rally in Indian equity markets, in a sign of renewed market depth and growing investor confidence. So far in May, the combined average daily turnover of the BSE and NSE cash segments has touched Rs 1.16 lakh crore - highest since September 2024 - representing an 8 percent rise from a month ago. This also marks the third consecutive month of growth in cash market turnover. (Read More)

The Leela Hotels IPO is structured as a book-built issue, which includes a fresh issuance of 57.5 million equity shares and an Offer for Sale (OFS) where the promoter, Project Ballet Bangalore Holdings, is divesting 23 million equity shares.

Borana Weaves IPO: The listing premium is lower than the 19.91% GMP with which unlisted shares of the company were trading in the grey market, ahead of their official market debut. (Read More)

Borana Weaves debuts at Rs 243 on listing, marking a 12.50% premium over IPO price of Rs 216

Pune-based engineering services and solutions provider Neilsoft, which is backed by the Japan-based Fujita Corporation, has refiled its preliminary papers with the SEBI for its initial public offering, while reducing the fresh issue size. The IPO will be a combination of fresh issuance of equity shares worth Rs 90 crore, and an offer-for-sale of 80 lakh shares by the existing shareholders including promoters, as per the draft papers filed on May 26. (Read More)

Borana Weaves fixed price of Rs 216 per share. The IPO consisted entirely of a fresh issuance of 67.08 lakh equity shares.

The last Grey Market Premium (GMP) for Borana Weaves IPO was Rs 43, updated on May 27, 2025, at 08:02 AM, as per investorgain.com.  Given the price band of Rs 216.00, the IPO’s estimated listing price is Rs 259 (cap price + current GMP). This suggests a potential gain of approximately 19.91% per share.

Vinit Bolinjkar, Head of Research at Ventura Securities, commented that the Borana Weaves share price appears to be richly valued. He pointed out that the company's fundraising was based on an Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA) multiple of 10 times its assumed FY25 earnings.

Central Mine Planning and Design Institute Ltd (CMPDIL), a unit of the state-run miner Coal India, has filed for an initial public offering, draft papers dated Monday showed. (Read More)

Kfin Technologies is the IPO registrar for Borana Weaves IPO. On the other hand, Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the public offer.

Stocks like InterGlobe Aviation IndiGo, PG Electroplast, Sagility India, 360 ONE WAM, Aurobindo Pharma, Bayer Cropscience, Shilpa Medicare, Lumax Industries, Amber Enterprises India, KFin Technologies, Dabur India, and Borana Weaves will be in focus on May 27. (Read More)

Based on the annualised earnings for FY25, the Initial Public Offering (IPO) is priced at a Price-to-Earnings (P/E) ratio of 14.7 times. If we consider the earnings from FY24, the P/E ratio stands at 24.4 times. Following the IPO, the company's market capitalisation is projected to be approximately Rs 575.5 crore. Mr. Solanki further noted that the company's transition towards water jet looms has the potential to bolster its long-term profitability.

Narendra Solanki, Head of Fundamental Research at Anand Rathi Wealth's Investment Services, offered his perspective on the industry's prospects, stating that the Indian synthetic textile sector is poised to gain from prevailing global trends. He highlighted the projected 3.7% growth of the man-made fibers market by 2025, suggesting that Borana Weaves is strategically positioned to leverage both domestic and international market opportunities. Solanki advised investors to consider securing partial profits upon listing while maintaining a portion of their holdings for potential long-term growth, based on the company's fundamentals and future outlook. (Read More)

Ahmedabad-headquartered Borana Weaves specialises in the production and distribution of unbleached synthetic grey fabric, focusing primarily on business-to-business (B2B) clients. To enhance customer support and ensure prompt deliveries, the company intends to reinforce its regional market presence.

Mahesh M. Ojha, AVP of Research and Business Development at Hensex Securities Pvt Ltd, stated, “Borana Weaves has received robust interest across all investor categories, especially from NIIs and the retail segment. With strong subscription figures and a current grey market premium of Rs 35, we anticipate the stock to list around Rs 251, reflecting an approximate 16% increase over the issue price of Rs 216.”

“Trading Members of the Exchange are hereby informed that effective from Tuesday, May 27, 2025, the equity shares of BORANA WEAVES LIMITED shall be listed and admitted to dealings on the Exchange in the list of ‘T’ Group of Securities,” a notice on BSE said.

Borana Weaves' shares are scheduled to be listed on Indian stock exchanges today, following the completion of the company’s initial public offering (IPO) valued at Rs 144.89 crore. The IPO listing date for Borana Weaves is May 27. The shares of Borana Weaves will be listed on both the BSE and NSE stock exchanges. The IPO was open from May 20 until May 22.

The Rs 3,500-crore IPO of Schloss Bangalore, which operates a chain of luxury hotels and resorts under The Leela brand, saw a subscription of roughly 6% on the first day of bidding (May 26). According to NSE data, the IPO garnered bids for approximately 28.75 lakh shares, compared to the total offer size of 4.66 crore shares. Retail investors subscribed to 20% of their allotted portion, while Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) each subscribed to about 3% of their respective allocations. (Read More)

Schloss Bangalore plans to allocate Rs 2,300 crore from the net proceeds of the fresh issue towards debt repayment, with the remaining funds earmarked for general corporate purposes.

The IPO of Schloss Bangalore includes a fresh share issuance valued at Rs 2,500 crore and an offer-for-sale (OFS) of Rs 1,000 crore by the promoter, Project Ballet Bangalore Holdings (DIFC). The public offering is open for subscription from May 26 to May 28. The company has set the price band for the IPO between Rs 413 and Rs 435 per share.

Retail investors subscribed to 20% of the portion allocated to them, while Non-Institutional Investors (NIIs) picked up about 3% of their reserved quota. Similarly, Qualified Institutional Buyers (QIBs) subscribed to nearly 3% of their allotted share.

The Rs 3,500-crore initial public offering (IPO) of Schloss Bangalore, which manages a chain of luxury hotels and resorts under The Leela brand, saw a subscription of approximately 6% on its opening day of bidding (May 26). As per data available on the NSE, the IPO attracted bids for about 28.75 lakh shares, compared to the total offer size of 4.66 crore shares.

Good morning and welcome to Moneycontrol. Today, we are tracking the subscription trends of Leela Hotels IPO, other news, updates from mainboard and SME segment of IPO world. Also, on our radar will be what's happening for the 8th Pay Commission, upcoming RBI MPC and much more.