The IPO of Schloss Bangalore Limited, the parent company of Indian luxury hotel chain ‘The Leela’, will open for subscription from May 26. Retail investors can bid for it till May 28, 2025. At the same time, anchor investors will be able to bid on May 23, 2025. The company wants to raise Rs 3,500 through this issue. In this IPO, the company will issue 5.75 crore new shares worth Rs 2,500 crore. 2.30 crore shares worth Rs 1,000 crore will be under offer for sale. How much minimum and maximum money can be invested?
The company has fixed the price band of the IPO from ? 413 to ? 435. Retail investors can bid for a minimum of one lot, which will contain 34 shares. If you apply for 1 lot as per the upper price band of IPO of Rs 435, then you will have to invest Rs 14,790 for it. At the same time, retail investors can apply for a maximum of 13 lots or 442 shares. For this, investors will have to invest Rs 1,92,270 as per the upper price band. 10% of the issue reserved for retail investors
About 75% of the IPO has been allotted to Qualified Institutional Buyers (QIBs). Apart from this, 15% of the issue has been reserved for non-institutional investors and the remaining 10% for retail investors. Why is the company bringing this IPO?
Schloss Bangalore will use Rs 2,300 crore from the funds raised from this IPO to repay the loan. Apart from this, the remaining funds will be used for general corporate purposes. What is an IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering or IPO. The company needs money to expand its business. In such a situation, instead of taking loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
