The shares of Schloss Bangalore, the operator of The Leela brand of luxury hotels and resorts, witnessed a turbulent debut in the stock market on June 3. Listed at INR406 apiece on the NSE, the price was 6.67% below the IPO price of INR435. Similarly, the shares debuted on the BSE at INR406.50, reflecting a 6.55% discount.
Despite the underwhelming start, the stock rebounded strongly throughout the trading session, closing at INR434, just shy of the IPO price. The market capitalization of Schloss Bangalore stood at over INR14,545 crore at the close of trading on the BSE.
The listing price underperformed against expectations set by the grey market premium (GMP), which had predicted a marginal premium of INR2 per share, bringing the projected price to INR437 apiece.
Schloss Bangalore’s volatility highlights mixed investor sentiment amidst broader market uncertainty. Nevertheless, the luxury hospitality group remains a key player in India’s premium hotel sector, with a robust portfolio under The Leela brand. The near-recovery to its IPO price reflects sustained investor confidence in its long-term growth potential, supported by the ongoing expansion and strong brand equity in the luxury segment.
Source: Money Control
