About the Company:
Lemon Tree Hotels is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms.
Company is the ninth largest hotel chain in India in terms of owned, leased and managed rooms, as of June 30, 2017.
Company operates in the mid-priced hotel sector, consisting of the upper-midscale, midscale and economy hotel segments.They seek to cater to Indian middle class guests and deliver differentiated yet superior service offerings, with a value-for-money proposition.
Company had opened their first hotel with 49 rooms in May 2004. They operated 4,697 rooms in 45 hotels (including managed hotels) across 28 cities in India as of January 31, 2018.
Company’s hotels are located across India, in metro regions, including the NCR, Bengaluru, Hyderabad and Chennai, as well as tier I and tier II cities such as Pune, Ahmedabad, Chandigarh, Jaipur, Indore and Aurangabad.
As of January 31, 2018, they have a portfolio of 19 owned hotels, three owned hotels located on leased or licensed land, five leased hotels and 18 managed hotels and have a development pipeline of 3,038 rooms across 28 new and one existing hotel.
Company’s Brands:
Company’s vision is to be India’s largest and most preferred chain of hotels and resorts in each of the upper-midscale, midscale and economy hotel segments.They have created three brands in order to address these three hotel segments:
- ‘Lemon Tree Premier’ which is targeted primarily at the upper-midscale hotel segment catering to business and leisure guests who seek to use hotels at strategic locations and are willing to pay for premium service hotel properties.
- ‘Lemon Tree Hotels’ which is targeted primarily at the midscale hotel segment catering to business and leisure guests and offers a comfortable, cost-effective and convenient experience.
- ‘Red Fox by Lemon Tree Hotels’ which is targeted primarily at the economy hotel segment.
Details of Each Brands:
Geographic Spread of Existing Hotels:
Key Operational Parameters for the Company:
ADR : Average Daily Rate
Owned & leased Hotels Under Development: (Upcoming Hotels)
Management Team:
- Mr. Patanjali Govind Keswani (Designation: Chairman and Managing Director)
- Mr. Rattan Keswani (Designation: Deputy Managing Director)
- Mr. Aditya Madhav Keswani (Designation: Non-Executive Director)
Special Thanks: We would like to thank the Management Team of Lemon Tree Hotels Ltd for inviting Markets Guruji Team to the IPO Press Conference.
Objectives of the Issue:
Offer For Sale (OFS): (Around Rs.1038 cr)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Positives for the Company:
Leading mid-priced hotel chain with a differentiated Business Model.
They are India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, in terms of controlling interest in owned and leased rooms.
Company has a portfolio of 45 hotels spread across 28 cities, as of January 31, 2018. As of June 30, 2017, their rooms comprised 4.22% of upper-midscale, 7.65% of midscale and 15.30% of economy rooms, aggregating to 6.91% of all mid-priced rooms, available across chain affiliated hotels in India.
Strategically positioned in key Geographical Areas.
Company’s hotels are located in major metro regions in India, including the NCR, Bengaluru, Hyderabad and Chennai, as well as tier I and tier II cities in India such as Pune, Ahmedabad, Chandigarh, Jaipur, Indore and Aurangabad.
In the leisure hotel segment, they operate a resort and a hotel in Goa, one resort in the backwaters of Alleppey, Kerala and one wildlife resort in Bandhavgarh, Madhya Pradesh.
Company has strategically developed their hotels at locations with high barriers-to-entry within or close to major business centers, airports and other convenient locations.
Financials of the Company: (Consolidated)
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 217.43 | 222.96 | 291.57 | 370.07 | 418.13 | 352.87 |
| Net Profit | (-19.97) | (-39.3) | (-63.2) | (-29.79) | (-7.17) | 2.84 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 26th March 2018 |
| Issue Closes on:. | 28th March 2018 |
| Issue Price | Rs.54 – 56 |
| Retail Portion | 35% |
| Face Value | Rs.10 |
| Minimum Lot | 265 shares |
| Minimum Investment | Rs.14,840 |
| Issue Constitutes | 23.58% |
| Issue Size | Rs.1038 cr ($159 Million) |
| Market Cap | Rs.4403 cr ($677 Million) |
| Listing at | NSE & BSE |
| Total Equity Shares Offered (OFS) | 18,54,79,400 |
| Equity Shares Prior to the Issue | 78,64,12,683 |
| Equity Shares after the Issue | 78,64,12,683 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 4th April 2018 |
| Initiation of Refunds | on or Before 5th April 2018 |
| Credit of Equity Shares: | on or Before 6th April 2018 |
| Listing Date: | on or Before 9th April 2018 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 3,70,95,880 | 0.82 | 1.43 | 3.88 |
| NII | 2,78,21,910 | 0.034 | 0.052 | 0.12 |
| Retail | 6,49,17,790 | 0.023 | 0.04 | 0.11 |
| Employee | ————— | —— | —– | —– |
| TOTAL | 12,98,35,580 | 0.25 | 0.44 | 1.19 |
IPO Valuation Parameters: (For the Nine Months ended December 31, 2017)
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 0.04 | 1400 | 0.23% | 15.66 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Avoid | NA | NA |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 19/03/2018 | Lemon Tree Hotels Ltd | 54 – 56 | NA | NA |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below link)http://kosmic.karvy.com:81/ipotrack/ |
| Company Contact Info: |
|---|
| Lemon Tree Hotels Ltd Asset No. 6 Aerocity Hospitality District New Delhi 110 037, India Telephone: +91 11 4605 0101 Facsimile: +91 11 4605 0110 Website: www.lemontreehotels.com |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower – B Plot 31 and 32, Gachibowli Financial District, Nanakramguda Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222 Email: lemontree.ipo@karvy.com Investor e-mail: einward.ris@karvy.com Website: www.karisma.karvy.com |
