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Lemon Tree Hotels' IPO debut in India 25% subscribed

India-based hotel chain operator Lemon Tree Hotels Ltd. made its IPO debut March 26 on the National Stock Exchange of India Ltd., with a 25% subscription rate logged during the day.

The price band for the 185,479,400 IPO equity shares was set between 54 rupees and 56 rupees. As of March 26, of the total 129,835,580 shares offered, 37,095,880 shares were offered to qualified institutional buyers, 27,821,910 shares to non-institutional investors and 64,917,790 shares to retail individual investors.

Data from the stock exchange also notes that the total shares to be offered until March 28 include 55,643,820 shares for anchor investors. Lemon Tree has raised 311.0 million rupees from the offering's anchor portion, according to a March 26 report from local publication Mint.

As of Jan. 31, Lemon Tree operates 4,697 rooms across 45 hotels in 28 Indian cities, adding that it is the largest midpriced hotel chain in the country.

Proceeds from the IPO will go to the company's selling shareholders, and the hotel group noted that it is pursing the listing on the National Stock Exchange and the Bombay stock exchange to enhance its visibility and brand image and provide shareholders liquidity.

The selling shareholders are Maplewood Investment Ltd., RJ Corp. Ltd., Ravi Kant Jaipuria and Sons, Five Star Hospitality Investment Ltd., Whispering Resorts Pte. Ltd., Palms International Investments Ltd., Swift Builders Ltd., Satish Chander Kohli and Raj Pal Gandhi.

Kotak Mahindra Capital Co. Ltd., CLSA India Pte. Ltd. and J.P. Morgan India Pte. Ltd. are the global coordinators and book-running lead managers for the offering. YES Securities (India) Ltd. is also a book-running lead manager.

As of March 26, US$1 was equivalent to 64.75 Indian rupees.