Mid-priced hotel chain leader, Lemon Tree IPO got subscribed by 1.2 times as at the end of the last day of bidding backed by strong demand from institutional investors. The public offer saw bids for 15,47,18,395 shares as against the issue size of 12,98,35,580 shares, implying a subscription of 120%, data with the exchanges showed. Institutional investors emerged as lead bidders, with 3.88 times of their portion subscribed at the end of third day. Non-institutional investor portion was subscribed by 12%. The portion of shares reserved for retail investors was subscribed by just 12%. The IPO of Lemon Tree consisted of an offer for sale of up to 18,54,79,400 shares of face value of Rs 10 each by the selling shareholders. According to the details, at the higher end of the price band, the issue size works out to Rs 1002-1039 crore. The shares are being sold by Lemon Tree\u2019s pre-issue investors and promoters. As the public offer is a complete offer for sale, Lemon Tree will not receive any proceeds from the issue. The price band was set at Rs 54-56. Further, bids could be made in lots of 265 equity shares and in multiples thereafter.\u00a0 Many brokerages point out that the Lemon Tree IPO is overvalued and is unlikely to offer any listing gains. Noting that at the upper end of the price band, the EV\/EBITDA multiple works out be 44.5x EBITDA of FY2017 and ~38.6x on its FY2018 annualized EBITDA, which is on the higher side even compared to large listed hotel players like Indian Hotels (available at 33x FY2018 EV\/EBITDA, others are available at 20-25x), Angel Broking has a neutral rating on the issue. Started in 2002, Lemon Tree Hotels has emerged as India\u2019s largest hotel chain in the mid-priced hotels across the country and the third largest overall, on the basis of controlling interest in owned and leased rooms. Lemon Tree Hotel operates more than 4,600 rooms in 45 hotels (including managed hotels) spread across 28 cities in the country.