Lemon Tree Hotels Limited to acquire balance 70% stake in Hamsted

The Board of Lemon Tree Hotels Limited ("Company") has approved acquisition of 70% shareholding of Hamstede Living Private Limited (herein after as "Hamstede") on March 30, 2021 from other existing shareholders of the Hamstede subject to necessary formalities and execution of documentation in this regard. Consequent to acquisition, Hamstede shall become wholly owned subsidiary of the Company.

The Company had entered into a joint venture with Magnolia Grove Investment Ltd, an affiliate of Warburg Pincus ("Magnolia") in the month of December' 2018 in Hamstede to carry the business of student housing / co-living for working professionals. Hamstede which was initially incorporated as Wholly owned subsidiary of the Company, became a Subsidiary of Magnolia post joint venture with the following shareholding:

Company - 30%
Magnolia - 67.50%
Mr. Patanjali Govind Keswani (along with its affiliate) - 2%
Mr. Rahul Pandit - 0.50%

Shares of Lemon Tree Hotels Ltd was last trading in BSE at Rs.35.95 as compared to the previous close of Rs. 36.8. The total number of shares traded during the day was 255828 in over 1552 trades.

The stock hit an intraday high of Rs. 37.45 and intraday low of 35.35. The net turnover during the day was Rs. 9240105.

Source : Equity Bulls

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