ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Paisa Wasool: Mutual Funds-SIP Returns Calculator | Start from Rs 5k, get Rs 1.75 cr - SOLID MONEY FORMULA
  • WhatsApp New Feature: Soon! you can undo, recover WhatsApp deleted messages
  • LIC customers ALERT! Insurer launches campaign to revive lapsed policies - All you need to know
  • Wealth Guide: Income Tax - SMART TIPS! 5 tax-saving techniques for FY23 - Here is what expert suggests
  • Loss-making US company's share price zooms over 400% in one month - factors behind rally DECODED
Read in App
Business News » Companies News

Lemon Tree Hotels IPO soon; CMD Patanjali Keswani has unusual take on shareholders

While Lemon Tree Hotels doesn’t have a direct competitor in the listed space, it will be counted among the likes of Indian Hotels, EIH, Mahindra Holidays, Hotel Leela Ventures and Royal Orchid Hotels on the bourses

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Lemon Tree Hotels IPO soon; CMD Patanjali Keswani has unusual take on shareholders
Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels. Image source: Lemon Tree Hotels

Lemon Tree Hotels is all set to launch its Initial Public Offering (IPO) worth Rs 1,000-1,200 crore by end of March.

The issue is an offer for sale (OFS) and comprises sale of up to 195,797,000 equity shares by existing shareholders such as Maplewood, RJ Corp, RKJ HUF, Five Star, Palms International, Citron and Whispering Resorts.

As the offer comprises only an OFS without any fresh issuance of equity shares, Lemon Tree will not receive any proceeds from the offer.

"The public listing will enhance our visibility and brand image and provide liquidity to our shareholders," said Patanjali Keswani, Chairman & Managing Director, Lemon Tree Hotels. 

The New Delhi-based hotel had received the market regulator Sebi’s nod for IPO last year on December 22. 

Also read: Pace of IPO market in India looks strong in 2018

While Lemon Tree doesn’t have a direct competitor in the listed space, it will be counted among the likes of Indian Hotels, EIH, Mahindra Holidays, Hotel Leela Ventures and Royal Orchid Hotels on the bourses.

Lemon Tree is largely backed by Warburg Pincus and also counts Dutch pension fund APG as an investor. 

Kotak Mahindra Capital Co, CLSA India, JP Morgan, and YES Securities are the merchant bankers managing the IPO.

The promoters hold 31.11 per cent stake in the company and private equity investors and other non-promoter shareholders hold 68.89 per cent stake.

Financials

The revenue from the operations of the company during FY17 came in at Rs 411.93 crore, a jump of nearly 12 per cent from Rs 367.95 crore reported in FY16, according to draft red herring prospectus (DRHP) available with Sebi. 

The revenue from operations grew at a compound annual rate of 17.7 per cent between FY13 and FY17, the DRHP document mentioned. 

The company’s net loss slipped to Rs 7 crore, from Rs 29.8 crore reported in FY16.

Employees come first, says Keswani

For Patu Keswani, employees are most important in his priority list.

“I will any day trade off a shareholder or a customer for my employees. If it affects company's share price, so be it,” said Keswani.

On asking if shareholders’ money is like a commodity to him (as he stated earlier), he accepts so unapologetically, adding time is more valuable a commodity than money.

“I won’t be unfair to shareholders. They will monetise their investment, but in the priority order, I would first take care of those who have invested their time in me, and these are my employees,” said Keswani at a press meet in his Goa property. 

About the company

Lemon Tree Hotels employees over 5000 people, of which 20 per cent are ‘opportunity deprived Indians’, who are handicapped or belong to economically/socially weak segment.

Lemon Tree opened its first hotel with 49 rooms in May 2004. As of July 31, 2007, the company operated 4,289 rooms in 40 hotels (including managed hotels) across 24 cities in India.

Keshwani has plans to extend number of rooms to 8,000 by March 2019.

The group offers three brands to meet demand in all the segments: 1) Lemon Tree Premier for upper midscale segment, 2) Lemon Tree Hotels for midscale segment, and 3) Red Fox for economy segment.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
MarketsLemon Tree HotelsPatanjali KeshwaniPatu KeshwaniLemon Tree Hotels IPOshareholdersIPO launchSebi nodfinancialsroomsEmployees
Written By: Aprajita Sharma
Updated: Wed, Feb 28, 2018
11:04 am
ZeeBiz WebDesk
RELATED NEWS
Syrma SGS Tech IPO subscribed 2.27 times on Day 3 Syrma SGS Tech IPO subscribed 2.27 times on Day 3
Stock market rally! Equity investors richer by over Rs 7.41 lakh crore in 4 trading sessions Stock market rally! Equity investors richer by over Rs 7.41 lakh crore in 4 trading sessions
Concord Biotech IPO: Rare Enterprises-backed company files IPO papers with Sebi Concord Biotech IPO: Rare Enterprises-backed company files IPO papers with Sebi
Alvida Big Bull! Zee Business’ tribute to Rakesh Jhunjhunwala; Know what Raamdeo Agrawal, Sunil Singhania said about this ace investor Alvida Big Bull! Zee Business’ tribute to Rakesh Jhunjhunwala; Know what Raamdeo Agrawal, Sunil Singhania said about this ace investor
Anil Singhvi pays tribute to Rakesh Jhunjhunwala! Recalls interview with BIG BULL - from philanthropy to lessons for investors, this is what he said Anil Singhvi pays tribute to Rakesh Jhunjhunwala! Recalls interview with BIG BULL - from philanthropy to lessons for investors, this is what he said

LATEST NEWS

Stocks to buy today: Ashok Leyland, Bharti Airtel, Vodafone Idea among 20 shares for profitable trade on August 18

Will Sri Lanka's former President Gotabaya Rajapaksa return to island nation? His cousin Udayanga Weeratunga says this

Stock market recovery: Nifty, Sensex up almost 12% in one month; how current rally proved a majority of experts wrong

Anil Singhvi's Strategy on August 18: Support zone on Nifty is 17,775-17,850, Bank Nifty is 39,125-39,250

Opening Bell: Market snaps 7-day gaining streak, Sensex down 180 points, Nifty below 17,900 – IT, Banks drag

Happy Janmashtami 2022: Download, send WhatsApp Stickers on this Krishna Janmashtami - Follow simple guide here

Subhas Chandra Bose death anniversary quotes netaji date day reason freedom news update

Zomato-backed Shiprocket, valued at $1.2 billion, is India's 106th unicorn

Paisa Wasool: Mutual Funds-SIP Returns Calculator | Start from Rs 5k, get Rs 1.75 cr - SOLID MONEY FORMULA FOR RETIREMENT

Apple iPhone 14 Pro Max release date, price, specifications, color options - What to expect during September launch

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV