Lemon Tree Hotels IPO is a leading non-banking finance company and is all set to make a debut in the stock market with an issue size of 1038.68 Cr.
IPO – Overview
| Issue Date | 26-28 March 2018 |
| Lemon Tree Hotels IPO Opening Date | 26 March 2018 |
| Lemon Tree Hotels IPO Face Value | INR 10 per share |
| Lemon Tree Hotels IPO Price | INR 56 per share |
| Lemon Tree Hotels IPO Lot Size | 265 Shares |
| Issue Size | 1038.68 Cr |
| Offer for sale | – |
| Issue Type | Book built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | 3.88 times |
| NII (HNI) Shares | 0.12 times |
| Company Promoters | The Promoters of the Company are Mr. Patanjali Govind Keswani and SMSPL. The Promoters hold, in the aggregate, 184,784,311 Equity Shares which constitutes 23.49% of the Company’s Pre-Offer paid-up Equity Share capital. |
Tentative Dates
| Lemon Tree Hotels IPO opening date | 26 March 2018 |
| Lemon Tree Hotels IPO closing date | 28 March 2018 |
| Basis of Allotment | 4 April 2018 |
| Initiation of Refunds | 5 April 2018 |
| The credit of Shares to Demat | 6 April 2018 |
| Lemon Tree Hotels IPO Listing Date | 9 April 2018 |
Company Overview
It is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, based on 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.
Industry Overview
International hotel companies have about 50% of the total chain-affiliated supply in India, while their share of supply in the mid-priced hotel sector is only 33.7%. Four of the top five chains in this sector are domestic chains, ITC Hotels (Fortune hotels), Sarovar, Lemon Tree and Taj (Ginger hotels). Only Accor (Ibis, Ibis Styles, Formule One and Mercure), among the international chains, is in the top 5 position. Accor had the largest inventory growth between the fiscal year 2007 and the fiscal year 2017, followed by Lemon Tree and Sarovar both of which had similar inventory additions.
IPO-Objectives
- Achieve the benefits of listing Equity Shares on the Stock Exchanges.
- Sale of up to 195,797,000 Equity Shares by the Selling Shareholders.
Financial Statements
| Particulars | 31-March-17 | 31-Mar-16 | 31-Mar-15 |
| Total Assets | 13,602.13 | 13,112.89 | 12,965.17 |
| Total Revenue | 2,237.65 | 1,945.47 | 2,242.02 |
| Profit After Tax | 53.52 | -163.36 | – 10.40 |
Strengths
- ‘Its 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 properties.
- ‘Red Fox by Lemon Tree Hotels’ which is targeted primarily at the econom hotel segment.
Company Contact Information
Lemon Tree Hotels Limited
One Indiabulls Center, 20th Floor,
Tower 2A, Jupiter Mills Compound
Senapati Bapat Marg, Mumbai 400 013
Phone: + 91 22 4315 7000
Email: investor.relations@indostarcapital.com
Website: http://www.indostarcapital.com/
Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: indostar.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Lead Manager
- JM Financial Limited (Past IPO Performance)
- Kotak Mahindra Capital Company Limited (Past IPO Performance)
- Morgan Stanley India Company Pvt Ltd (Past IPO Performance)
- Motilal Oswal Investment Advisors Pvt Ltd (Past IPO Performance)
- Nomura Financial Advisory And Securities (India) Pvt Ltd (Past IPO Performance)
Lead Manager Reports
- IPO Lead Manager Performance Summary
- IPO Lead Manager Performance Tracker
