The hotels will each be in Rishikesh, Neelkanth and Mussoorie, a release issued here said.
"Joint Venture with APG is value-accretive as fee income gives Lemon Tree higher revenues/profit share. We have a buy rating with target of Rs 70," says Sumit Bilgaiyan, Founder of Equity99.
The company in consultation with merchant bankers has fixed final issue price at Rs 56 per share.
The IPO to raise Rs 1,038.68 crore received bids for 5,72,16,945 shares against the total issue size of 12,98,35,580 shares, data available with the NSE showed.
The IPO to raise Rs 1,038.68 crore received bids for 3,26,06,395 shares against the total issue size of 12,98,35,580 shares, the NSE data showed.
It has allotted 5,56,43,820 shares to 18 anchor investors at a price of Rs 56 per scrip, garnering Rs 311.61 crore, the company said in a statement.
The hotel chain company is aimed to raise Rs 1,001.6-1,038.7 crore through the issue at a price band of Rs 54-56 per share.
These investors subscribed shares at higher end of price band of Rs 54-56 per share.
The entire issue by Lemon Tree Hotels consists of offer for sale by Maplewood Investment, RJ Corp, Ravi Kant Jaipuria and Sons (HUF), Whispering Resorts, Swift Builders, Five Star Hospitality Investment Limited, Palms International Investments Limited, Satish Chander Kohli and Raj Pal Gandhi.
Built at a cost of Rs 35 crore, the hotel has 61 rooms and suites and offers facilities including 24X7 multi-cuisine coffee shop, a recreation bar, a gymnasium and an outdoor swimming pool, R Vijayakumar, director, Lakshna Consultants and Hoteliers, which manages the property, told reporters here.
Together, these companies are estimated to raise more than Rs 6,000 crore, according to merchant banking sources.
Mid-priced hotel chain Lemon Tree Hotels today announced the opening of two properties, Lemon Tree Premier Patna Bihar and Lemon Tree Hotel Alwar in Rajasthan.
The public offer comprises sale of up to 195,797,000 equity shares by the existing shareholders, including Maplewood, Whispering Resorts, Palms International and RJ Corp, according to the draft red herring prospetus (DRHP).
Lemon Tree is backed by Warburg Pincus and the IPO will provide the company an opportunity to encash its investments. The private equity giant holds 20-25% stake in the company. Lemon Tree and Warburg didn’t respond to Moneycontrol’s queries. The IPO may comprise stake sale by promoters as well as issue of fresh shares.
As a President, Vikramjit Singh will be responsible for sales, marketing and business development for the company, Lemon Tree Hotel Company said in a statement.
Bangalore headquartered travel portal, Via.com kicked off ‘The Biggest Online Travel Sale' from 9th December to 11th December 2015.
As non-serious players exit and asset prices correct, hotel companies are acquiring premium assets at attractive prices.
Maverick hotelier Patu Keswani has grand plans for his Lemon Tree Hotels. But a lot hinges on the chain's ability to ramp up operations at a never before seen pace.
Patu Keswani's Lemon Tree Hotels has signed a joint venture that will enable him to check in with 6-7% of India‘s hotel room inventory.