Lemon Tree Hotels had a good start to its journey on bourses as the shares managed to close around 29 percent higher than its issue price on the first day of stock market debut.
Earlier, shares of the hospitality chain got listed on stock exchanges with a premium of 10 percent over the issue price of Rs 56 on Monday (April 9). The Lemon Tree Hotels stock got listed at Rs 61.60 on both the BSE and NSE.
The shares closed at Rs 72.10 a piece, a rise of Rs 16.1 to the issue price of Rs 56. About 29 lakh shares of the company were traded on the BSE and over 2 crore shares changed hands on the NSE.
Lemon Tree Hotel's initial public offer (IPO) was opened on March 26 and closed on March 28. The IPO was subscribed 1.2 times. The price band for the offer was fixed at Rs 54-56. It had raised Rs 311 crore from anchor investors ahead of the IPO.
CLSA India, Kotak Mahindra Capital Company, JP Morgan India, and Yes Securities were the book-running lead managers of the issue.
The company's market valuation stood at Rs 4,922.94 crore.Warburg Pincus-backed Lemon Tree Hotels Limited is a popular network in the mid-priced hotel sector. It has a network of 40 hotels with 4,300 rooms in 24 cities across the country.
It operates hotels under three brands namely— Red Fox, Lemon Tree, and Lemon Tree Premier. The Delhi based company was founded in 2002 by Patu Keswani.