BackLemon Tree Hotels IPO subscribed 25% on Day 1 of bidding
The qualified institutional buyers (QIBs) portion was subscribed 82%, non institutional investors3% and retail investors2%
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New Delhi: The initial public offer (IPO) of hospitality chain Lemon Tree Hotels was subscribed 25% on the first day of the three-day bidding on Monday.
The IPO to raise Rs1,038.68 crore received bids for 3,26,06,395 shares against the total issue size of 12,98,35,580 shares, NSE data showed. The qualified institutional buyers (QIBs) portion was subscribed 82%, non institutional investors—3% and retail investors—2%.
The IPO is of up to 185,479,400 shares (including anchor portion of 55,643,820 shares). The offer is in a price band of Rs54-56 and would close on 28 March. Lemon Tree Hotels has raised Rs311 crore from anchor investors. The company’s shares are proposed to be listed on BSE and the National Stock Exchange.
Kotak Mahindra Capital Company, CLSA India, and J.P. Morgan India and YES Securities (India) are the global coordinators and book running lead managers to the offer.
Read more: Lemon Tree Hotels IPO opens: Analysts say valuations steep
Started in 2002, 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 31 January 2018, it operates 4,697 rooms in 45 hotels (including managed hotels) across 28 cities in India.
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