IPO Update: Lemon Tree Hotels lists at a premium
Post the successful IPO, the stocks of mid-budget hotel chain Lemon Tree Hotels listed on the exchanges at Rs. 61.60 per share on BSE on Monday.
The pure Offer for sale issue was subscribed 1.19 times. The company's Initial Public offering (IPO) was for Rs. 1,038.68 crore at a issue price band of Rs. 54 to 56 per share. The proceeds of the IPO will go to the selling shareholders including Maplewood (investment arm of Warburg Pincus), Whispering Resorts, Palms International and RJ Corp.
Lemon Tree debuted on BSE at Rs. 61.60 per share, which is a premium of 10 per cent. At 11:15 on Monday, the stock was quoting Rs. 59.65 per share, up by 6.52 per cent compared to its issue price and down by 3.17 per cent compared to its opening price. In early trade the stock had hit Rs. 65 per share. The market was in a positive mood with the benchmark index BSE Sensex at 33,765.68, up by 138.71 points or 0.41 per cent.
Lemon Tree Hotels is a chain of mid-priced hotels in India. With 45 hotels located in 28 cities, the hotel offered 4,697 rooms as on January 31, 2018. The company's portfolio includes 19 owned hotels, 3 owned hotels on leased land, 5 leased hotels and 18 managed hotels. It largely operates under three brand names, Lemon Tree Hotel, Lemon Tree Hotel Premier and Red Fox, which offers economic accommodations.