Lemon Tree Hotels IPO Oversubscribed On Final Day Of Bidding

The QIB portion received was subscribed 3.89 times.

Guests sit in the lounge area a hotel. (Photographer: Krisztian Bocsi/Bloomberg)  
Guests sit in the lounge area a hotel. (Photographer: Krisztian Bocsi/Bloomberg)  

Final Day Subscription (As of 6 p.m.)

  • Qualified institutional buyers: 3.89 times
  • Non-institutional bidders: 0.12 times
  • Retail investors: 0.12 times
  • Overall: 1.19 times

The initial public offer of hospitality chain Lemon Tree Hotels was subscribed 1.19 times on the final day of bidding today.

The qualified institutional buyers’ portion received strong demand, and was subscribed 3.89 times the number of shares on offer, according to data shared by Axis Capital as of 6 p.m. The non institutional investors’ portion and the retail investor segment was subscribed 0.12 times each.

Promoters, private equity firm Warburg Pincus, and Dutch pension fund APG, are offloading 18.5 crore shares or 23.59 percent stake in the three-day offer, at a price band of Rs 54-Rs 56 apiece.

Ahead of its IPO, India’s largest hotel chain in the mid-priced segment, raised Rs 311 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.

Also Read: Lemon Tree Hotels IPO: Here’s All You Need To Know