Lemon Tree Hotels IPO Basis of Allotment

LEMON TREE HOTELS LIMITED

Our Company was incorporated as 'P.M.G Hotels Private Limited' on June 2,1992, as a private limited company under the Companies Act 1956, at New Delhi, with a certificate of  incorporation granted by the Registrar of Companies, National Capital Territory of Delhi and Haryana('RoC':). Pursuant to a resolution of our shareholders dated December 13, 2002, the name of our Company was changed to'Krizm Hotels Private Limited' and a fresh certificate of incorporation was issued by the RoC on January 7, 2003, pursuant to such change in our name. Further, pursuant to a resolution of our shareholders dated June 2, 2010, the name of our Company was changed to 'Lemon Tree Hotels Private Limited' and a fresh certificate of incorporation consequent to change in name was issued by the RoC on June 10, 2010. On the conversion of our Company to a public limited company pursuant to a resolution passed by our shareholders on September 29, 2012, our name was changed to 'Lemon Tree Hotels Limited' and a fresh certificate of incorporation was issued by the RoC on October  22, 2012. For details of changes in name and registered office of our Company, see 'History and Certain Corporate Matters' on page 172 of   the prospectus dated April 2, 2018 ('Prospectus').

Corporate Identity Number: U74899DL 1992PLC049022; Registered and Corporate Office: Asset No. 6, Aerocity Hospitality District, New Delhi 110 037, India;
Tel: +91 11 4605 0101; Facsimile: +91 11 4605 0110;

Contact Person: Mr. Nikhil Sethi, Group Company Secretary & General Manager Legal and Compliance Officer; Tel: +91 11 4605 0122; Facsimile: +91 11 4605 0110;
E-mail: sectdeptt@lemontreehotels.com; Website: www.lemontreehotels.com

Offer Price: Rs.56 per Equity Share of face value of Rs.10 each
The Offer Price is 5.6 times the face value | Anchor Investor Offer Price: Rs. 56 per Equity Share

The Offer has been made in terms of  Rule 19(2)(b) (iii) of the Securities Contracts (Regulation) Rules, 1957, as amended (the 'SCRR'). It has been made in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (the 'SEBI ICDR Regulations') through the Book Building Process, wherein not more than 50% of the Offer was made available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIBs') (the 'QIBCategory'), provided that our Company and Maplewood, in consultation with the GCBRLMs and the BRLM, allocated 60% of the QIB Category to Anchor Investors (the 'Anchor Investor Portion') on a discretionary basis. One-third of the Anchor Investor Portion was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation was made to Anchor Investors, which price was determined by the Company and Maplewood in consultation with the GCBRLMs and the BRLM. 5% of the QIBCategory (excludingtheAnchor Investor Portion) was made available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category was made available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer was made available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer was made available for allocation to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders, other than Anchor Investors, were mandatorily required to participate in the Offer throughthe Application Supported by Blocked Amount ('ASBA') process by providing details of their respective bank account in which the Bid Amount was blocked by the Self Certified Syndicate Banks ('SCSBs').Anchor Investors were not permitted to participate in the Anchor Investor Portion through ASBA process. For details, see 'Offer Procedure' on page 555 of the Prospectus.

The bidding for Anchor Investors opened and closed on March 23, 2018. The company received 20 applications from 18 Anchor Investors (which included two mutual funds out of which one mutual fund had applied through a total of three schemes) for 57,559,590 Equity Shares. The Anchor investor price was finalized at Rs.56 per Equity Share. A total of 55,643,820 shares were allocated under the Anchor Investor Portion aggregating to Rs.3,116.05 million. The Offer received 17,759 applications for 211,873,330 Equity Shares (prior to technical rejections) resulting in 1.1423 times subscription. The details of the applications received in the Offer from various categories are as under (prior to technical rejections):

Final Demand

A summary of the final demand as per the NSE and BSE as on the Bid/Offer Closing Date at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the NSE on April 04,2018.

A. Allotment to Retail Individual Bidders (after technical rejections)

The Basis of Allotment to the Retail Individual Bidders, who have bid at the Cut-Off Price or at the Offer Price of Rs.56 per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 0.102130 times. The total number of Equity Shares Allotted in Retail Category is 6,630,035 Equity Shares to 16,763 successful Retail Individual Bidders. The category-wise details of the Basis of Allotment are as under:

Unsubscribed portion of 58,287,755 Equity Shares were spilled over to QIB category.

B. Allotment to Non-Institutional Bidders (After Technical Rejections)

The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Offer Price of Rs 56 per Equity Share or above, was finalized in consultation with the NSE. The Non-Institutional Category has been subscribed to the extent of 0.114022 times. The total number of Equity Shares Allotted in this category is 3,172,315 Equity Shares to 62 successful Non-Institutional Bidders. The category-wise details of the Basis of Allotment are as under:

Unsubscribed portion of 24,649,595 Equity Shares were spilled overto QIB category.

C. Allotment to QIBs (Excluding Anchor Investors)

Allotment to QIBs (Excluding Anchor Investors), who have Bid at the Offer Price of   Rs.56 per Equity Share or above, has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 1.200923 times of  QIB Portion (Including spill over from Nil and Retail category). As per the SEBI Regulations, Mutual Funds were Allotted 5% of the Equity Shares of QIB Portion available i.e. 6,001,662 Equity Shares (Including spill over from Nil and Retail category) and other QIBs, including Mutual Funds were Allotted the remaining available Equity Shares i.e. 114,031,568 Equity Shares (Including spill over from Nil and Retail category) on a proportionate basis. The total number of  Equity Shares Allotted in the QIB Portion is 120,033,230 Equity Shares, which were allotted to 25 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under:

Includes spillover of  82,937,350 Equity Shares from Nil category and Retail Category Portions.

D. Allotment to Anchor lnvestors

The Company and Maplewood, in consultation with the GCBRLMs and the BRLM, have allocated 55,643,820 Equity Shares to 20 Anchor Investors at the Anchor Investor Offer Price of Rs 56 per Equity Share in accordance with the SEBI Regulations. This represents 60 % of the QIB Category.

The IPO Committee of  the Company on Apnl 05, 2018 has taken on record  the Basis of Allotment of Equity Shares as approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice and/or  notices are being dispatched to the address of  the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of  funds, transfer to Public Offer Account have been issued on April 04, 2018 and payment to non-Syndicate brokers have been issued on April 6,2018. In case the same is not received within ten days, investors may contact  the Registrar to the Offer at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on April 05,2018 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing applications with NSE and BSE on April 5,2018. The Company has received listing and trading approvals from NSE and BSE and the trading will commence on April 9,2018.

The details of the allotment made have been hosted on the website of the Registrar to the Offer, Karvy Computershare Private Limited at https://karisma.karvy.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the first/ sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of  Bid cum Application Form, address of  the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address of  Registrar.

Karvy Computershare Private Limited
Karvy Selenium Tower - B, Plot 31 and 32, Gachibowli, Financial District, Nanakramguda
Hyderabad 500 032, Telangana, India
Tel:+91 40 67162222
Facsimile: +91 40 2343 1551
Email: lemontree.ipo@karvy.com
Investor Grievance e-mail: einward.ris@karvy.com
Website: www.karisma.karvy.com
Contact Person: Mr. M. Muralikrishna
SEBI Registration No.: INR000000221

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF LEMON TREE HOTELS LIMITED.