Hospitality chain Lemon Tree Hotels has received Securities and Exchange Board of India’s (SEBI) nod to float an Initial Public Offering (IPO). The company had filed the Draft Red Herring Prospectus (DRHP) with capital market regulator in September and obtained its observations on December 22, which is necessary for any company to launch public offer.
The public offer comprises sale of up to 19,57,97,000 equity shares by the existing shareholders, including Maplewood, Whispering Resorts, Palms International and RJ Corp. The offer will constitute up to 24.90% of the post-offer paid up equity share capital of the company.
Kotak Mahindra Capital Company, CLSA India, J P Morgan India and YES Securities will manage the public issue. The equity shares are proposed to be listed on the BSE and the National Stock Exchange (NSE).
Lemon Tree Hotels has hotels under four brands -- Lemon Tree Premier, which is an upscale brand; Lemon Tree Resorts, a leisure segment brand; Lemon Tree Hotels, a midscale brand and the economy brand Red Fox Hotels. The company has 40 hotels with 4,300 rooms in 24 cities across the country.