Brookfield Asset Management-backed Schloss Bangalore’s IPO was subscribed 4.50 times on May 28, its final day. The luxury hospitality company has The Leela Palaces, The Leela Hotels, and The Leela Resorts under its portfolio.
A major driver of demand was by the qualified institutional buyers (QIBs) which was subscribed 7.46 times with 18.96 crore shares bid against the 2.54 crore shares on offer.
Non-institutional investors (NIIS) subscribed 1.02 times while retail individual investors (RIIs) subscribed 0.83 times. In total, 20.96 crore shares were subscribed against the 4.66 crore shares on offer.
Slow start
The IPO saw a slow start with a muted response of 6 per cent on Day 1 and 17 per cent overall subscription on Day 2, with early demand led by retail investors.
The company had set a price band at ₹413-435 per share. The IPO, worth ₹3,500 crore, includes a fresh issue of ₹2,500 crore and an offer for sale (OFS) worth ₹1,000 crore by promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd. The IPO will close on May 28.
Proceeds from the IPO will be used for general corporate purposes and to repay loans worth ₹2,300 crore.
The company had already raised ₹1,575 crore from 47 marquee domestic and global anchor investors which included leading mutual funds such as HDFC MF, ICICI Prudential MF, Nippon India MF, Mirae MF and Invesco MF and insurance companies such as Max Life and Birla Life. There was strong demand from sovereign and long-only FIIs such as Think Invest, Fidelity, Norges Bank, Whiteoak, Lunate, UC Regents, TT International and Ward Ferry among others.
(Report filed by businessline intern Nethra Sailesh)