Hospitality major Lemon Tree Hotels on Tuesday stated it has fixed price band Rs 54 to Rs 56 per equity share for its initial public offer (IPO) to garner around Rs 1,040 crore, at the upper level of the price band.
Lemon Tree Hotels’ IPO comprises sale of up to 18,54,79,400 equity shares by the existing shareholders, counting Maplewood, Palms International, Whispering Resorts and RJ Corp. The offer will open on March 26 and close on March 28.
As the offer comprises only an Offer for sale (OFS) without any fresh issuance of equity shares, Lemon Tree will not receive any proceeds from the offer.
Lemon Tree chain has 45 hotels, with about 3200 rooms owned by the company, and about 1500 rooms under management contracts.
The public issued will be managed by CLSA India, Kotak Mahindra Capital Co, JP Morgan India and Yes Securities. The equity shares are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).