Business description – 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 is the ninth largest hotel chain in India in terms of owned, leased and managed rooms, as of 30 June 2017. It operates in the mid-priced hotel sector, consisting of the upper-midscale, midscale and economy hotel segments. Lemon Tree Hotels seeks to cater to Indian middle class guests and deliver differentiated yet superior service offerings, with a value-for-money proposition. The company opened its first hotel with 49 rooms in May 2004. 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 three hotel segments:
- Lemon Tree Premier – 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
- Lemon Tree Hotels – targeted primarily at the midscale hotel segment catering to business and leisure guests and offers a comfortable, cost-effective and convenient experience
- Red Fox by Lemon Tree Hotels – targeted primarily at the economy hotel segment
Promoters of Lemon Tree Hotels – Mr Patanjali Govind Keswani and Spank Management Services Private Limited
| Lemon Tree Hotels IPO details | |
| Subscription Dates | 26 – 28 March 2018 |
| Price Band | INR54 – 56 per share |
| Fresh issue | Nil |
| Offer For Sale | 185,479,400 shares (INR1,001.59 – 1,038.7 crore) |
| Total IPO size | 185,479,400 shares (INR1,001.59 – 1,038.7 crore) |
| Minimum bid (lot size) | 265 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
| Lemon Tree Hotels’ consolidated financial performance (in INR crore) | ||||||
| FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | 9M FY2018 | |
| Total revenues | 217.4 | 223.0 | 291.6 | 370.1 | 418.1 | 352.9 |
| Total expenses | 177.3 | 198.4 | 239.7 | 266.8 | 295.6 | 254.3 |
| Profit after tax | -19.6 | -39.4 | -63.2 | -29.7 | -7.1 | 2.9 |
| Net margin (%) | -9.0 | -17.7 | -21.7 | -8.0 | -1.7 | 0.8 |
Lemon Tree Hotels Contact Details
Lemon Tree Hotels LimitedÂ
Asset No. 6
Aerocity Hospitality District
New Delhi 110 037
Phone:Â +91 11 4605 0101
Fax:Â +91 11 4605 0110
Email: [email protected]
Website:Â www.lemontreehotels.com
Registrar of Lemon Tree Hotels IPO
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone:Â +91 40 6716 2222Â
Fax:Â +91 40 2343 1551Â
Email:Â [email protected]
Website:Â www.karvycomputershare.com
Valuation of Lemon Tree Hotels (Based on latest FY)
Earnings Per Share (EPS): -INR0.11
Price/Earnings (P/E) ratio: NA
Return on Net Worth (RONW): -0.66%
Net Asset Value (NAV): INR15.83 per share
Lemon Tree Hotels IPO Subscription Details
| Category | Shares offered | Subscription (no. of times)Â | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 37,095,880 | 0.82 | 1.42 | 3.88 |
| NII | 27,821,910 | 0.03 | 0.05 | 0.11 |
| Retail | 64,917,790 | 0.02 | 0.04 | 0.11 |
| Total | 129,835,580 | 0.25 | 0.44 | 1.19 |
Lemon Tree Hotels IPO Allotment Status
Lemon Tree Hotels IPO allotment status is now available on Karvy Computershare’s website. Click on this link to get allotment status.
Listing Performance of Lemon Tree Hotels
IPO Opening Date: 26 March 2018
IPO Closing Date: 28 March 2018
Finalisation of Basis of Allotment: 4 April 2018
Initiation of refunds: 5 April 2018
Transfer of shares to demat accounts: 6 April 2018
Listing Date: 9 April 2018
Listing Price on NSE: INR61.6 per share (up 10% from IPO price)
Closing Price on NSE: INR71.65 per share (up 27.9% from IPO price)
