Schloss Bangalore, the operator of luxury hotels and resorts chain under 'The Leela' brand name, announced on June 3 that it has received allotment for a project which would include a 250 key luxury hotel in Mumbai's Bandra Kurla Complex (BKC).

In an exchange filling, the newly listed company announced that it had submitted the bid for the project in February this year. On June 2, the company received approval from Mumbai Metropolitan Region Development Authority (MMRDA) for the allotment of the plot of land, spanning across 8,412 sq.m area of land.

Schloss Bangalore said that the lease has been allotted to the company, along with its consortium partners, for a period of 80 years. The total lease premium which is set to be paid by the consortium stood at over Rs 1,302 crore. Out of the total lease amount, 25 percent is payable within two months from the offer of allotment, and the remaining 75 percent within the next ten months.

The possession of the plot of land will be handed over to the consortium only after the payment of the total lease premium.

Schloss Bangalore shares were listed on BSE at Rs 406.50 apiece on June 2. This marks a discount of 6.55 percent over the IPO price of Rs 435 apiece. However, after the weak market debut, the stock saw significant volatility. The shares of the company soared nearly 7 percent to close slightly below the IPO price at Rs 434 apiece. At close, the market capitalization of the company stood at over Rs 14,545 crore on BSE.

The newly listed stock however closed in the red with marginal losses at Rs 435 apiece on June 3. The stock will be kept under active watch when the market reopens tomorrow, as it reacts to the announcement made in the post market hours of June 3.