Mid-priced hospitality chain leader Lemon Tree on Monday made a debut on the stock market as the shares of the company were listed at Rs 61.60 on the BSE at a 10 percent premium over the issue price of Rs 56.
Mid-priced hospitality chain leader Lemon Tree on Monday made debut on the stock market as the shares of the company were listed at Rs 61.60 on the BSE at a 10 percent premium over the issue price of Rs 56. The script of the hotel chain was listed at the same price on the NSE. Thereafter, the stock rose as much as 16.1 percent to Rs 65. Backed by strong demand from institutional investors, the hotel chain got subscribed by 1.2 percent at the end of last bidding day.
There were bids received for 15,47,18,395 shares as against the issue size of 12,98,35,580 shares. It implies a subscription of 120 percent, according to the data with the exchanges. The institutional investors subscribed 3.88 times of their portion at end of third day emerging as lead bidders. The quota of non-institutional investor portion was subscribed by 12 percent. The retail investors’ quota also got subscribed by just 12 percent.
The Lemon Tree IPO offered up to 18,54,79,400 shares of face value of Rs 10 each by the selling shareholders. Lemon Tree’s pre-issue investors and promoters are selling the shares and hence Lemon Tree will not receive any proceeds from the issue. The price band was set at At Rs 54-56, the price band was set. In addition, bids could be made in lots of 265 equity shares and in multiples after that.
As of January 31, across 28 cities in India, Lemon Tree operates 4,697 rooms in 45 hotels (including managed hotels) in total. It manages 1,500 and owns 3,200 hotels out of this.In its three brands, the company operates 10 upper mid-scale, 27 mid-scale, and eight economy hotels.