Lemon Tree Hotels Limited Ipo

About Company

Incorporated in 1992, Delhi based Lemon Tree Hotels is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of 30 June 2017.

The company operates in the mid-priced hotel sector and its 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.

As of 31 January 2018, it operated 4,697 rooms in 45 hotels (including managed hotels) across 28 cities in India. The company has created three brands in order to address these three hotel segments:

1.   ‘Lemon Tree Premier’ which is targeted primarily at the upper-midscale hotel segment catering to business and leisure guests who seek to use hotels at strategic locations and are willing to pay for premium service and hotel propertie.

2.  ‘Lemon Tree Hotels’ which is targeted primarily at the midscale hotel segment catering to business and leisure guests and offers a comfortable, cost-effective and convenient experience.

3.   ‘Red Fox by Lemon Tree Hotels’ which is targeted primarily at the economy hotel segment.

As of July 31, 2017, the company have a portfolio of 19 owned hotels, three owned hotels located on leased or licensed land, five leased hotels and 13 managed hotels. It also has project design, management and development capabilities through its Subsidiary, Grey Fox Project Management Company Private Limited (“Grey Fox”). Lemon Tree employed 3,070 personnel as of July 31, 2017 across its owned and leased or licensed properties

Company Promoters

1.      DR. Mr. Patanjali Govind Keswani  

2.      SMSPL

Company financial

(Rs in millions)

Registrar to the issue

1.       Karvy Computershare Private Limited

Lead Managers

1.       Kotak Mahindra Capital Company Limited

2.       CLSA India Private Limited

3.       J.P. Morgan India Private Limited

4.       YES Securities (India) Limited

Objects of the Issue:

The objects of the Offer are to-

1. Achieve the benefits of listing the Equity Shares on the Stock Exchanges .

2. Sale of up to 195,797,000 Equity Shares by the Selling Shareholders.

Risk factors

1.       This being the first public issue of our Company, there has been no formal market for the Equity Shares.

2.  Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Offer unless they can afford to take the risk of losing their investment.