Lemon Tree Hotels IPO

Lemon Tree Hotels IPOBusiness 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 Limited 
Asset No. 6
Aerocity Hospitality District
New Delhi 110 037

Phone: +91 11 4605 0101
+91 11 4605 0110
[email protected]
Website: 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: +91 40 6716 2222 
 +91 40 2343 1551 
 [email protected]
Website: 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) 
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)


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