Lemon Tree Hotels IPO subscribed 25%

Receives bids for 3.26 crore shares

The initial public offer (IPO) of Lemon Tree Hotels received bids for 3.26 crore shares on the first day of bidding today, 26 March 2018, as against 12.98 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 17:30 IST. The issue was subscribed 0.25 times. The issue opened for subscription today, 26 March 2018 and closes on 28 March 2018. The price band for the issue has been fixed at Rs 54 to Rs 56 per share.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 23 March 2018, finalised allocation of 5.56 crore equity shares to anchor investors at Rs 56 per share.

Lemon Tree Hotels (LTH) is India's largest chain in the mid-priced hotels sector and third largest overall, on the basis of controlling interest in owned and leased rooms, as of 30 June 2017, according to the Horwath Report. It operated 4,697 rooms in 45 hotels (including managed hotels) across 28 cities in India as of 31 January 2018. The hotels are located across India, in metro regions, including the NCR, Bengaluru, Hyderabad and Chennai, as well as tier I and tier II cities such as Pune, Ahmedabad, Chandigarh, Jaipur, Indore and Aurangabad.

The IPO comprises offer for sale of 18.54 crore shares by the selling shareholders. The objects of the issue is to get the benefits of listing the equity shares on the BSE and the NSE, to enhance visibility and brand image and provide liquidity to the existing shareholders.

On a consolidated basis, Lemon Tree Hotels reported net profit of Rs 2.18 crore on net sales of Rs 352.25 crore in the nine-months ended December 2017.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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