Lemon Tree Hotels listed to make its market debut today opened on a decent note with a script listing of Rs.61.60 on the BSE, accounting for 10 percent premium over the issue price of Rs.56.
As per data from National Stock Exchange (NSE), initial public offering (IPO) received bids for 15.49 crore shares and was subscribed over 1.19 times from a period extending 26 March 2018 to 28 March 2018. The price spectrum for the stocks was fixed at Rs. 56 per share.
This hospitality chain and hotel group are considered to be India’s largest chain in the mid-priced sector within hotel market while it is third largest overall. Lemon Tree hotels have already raised 311 crores from anchor investors.
The public issue is being raised to achieve the benefits of equity share on stock exchanges. A company spokesperson reported DRHP,
We expect that listing our equity shares will help us to enhance our visibility and brand image and at the same time will provide liquidity to our shareholders. It will also help to create a public market for equity shares in India.
Through its Initial Public Offering, the hotel chain has already created an exit path for some of its investors such as RJ Corp, Whispering Resorts, Maplewood and Swift Builders.
Lemon Tree Hotel was founded in 2002 by Patu Keswani. At present, the company has 40 hotels spread across 24 cities within the country. The company owns hotels under four brand names-
- Lemon Tree Premier, an upscale brand
- Lemon Tree Resorts, a leisure segment brand
- Lemon Tree Hotels, a midscale brand
- Red Fox Hotel, an economy brand