Schloss Bangalore Ltd. (SBL), owner of Leela Hotels, saw a muted IPO response, with overall subscription exceeding 2x on its final day. Qualified Institutional Buyers subscribed 1.5x, while retail and non-institutional investors showed weaker interest.
SBL’s valuation—300 times projected FY25 earnings and a post-issue EV/EBITDA of 26x—is a significant premium over peers. Risks include reliance on five owned properties contributing 91–94% of income, exposing it to regional and external disruptions.
The company’s FY25 metrics, including RevPAR (INR10,607) and ARR (INR16,409), outperformed industry averages. Its 49.78% EBITDA margin surpassed competitors’ 33.66–45.60%. Despite a INR48 crore FY25 profit, subsidiary losses and debt remain concerns.
Source: Money Control
