Shares of Lemon Tree Hotels Limited had amore than a dream debut and gained over 27%. The company had tapped the capital markets with its offer for sale of 18,54,79,400 shares in a price band of Rs 54-56. The company had allotted 5,56,43,820 equity shares to 18 anchor investors comprising of 20 entities. The highest allocation was made to SBI Mutual Fund of 1,15,84,740 equity shares which corresponds to 20.90% of the anchor allocation.
The public issue did not receive adequate response from HNI’s and Retail investors but was oversubscribed by QIB’s. The QIB portion was subscribed 3.89 times while HNI and Retail was a mere 12% each. The overall subscription was 1.89 times. Very clearly Retail and HNI comprising of half the issue were not enthused by the same.
The discovered price was Rs 61.60 on both the exchanges which was a good 10% higher. The low of the day was Rs 57.30 on the BSE and Rs 57.25 on the NSE. The high was the upper circuit of Rs 73.90 on both the exchanges. The close was Rs 71.60, a gain of Rs 15.60 or 27.86% on the BSE. On the NSE the close was Rs 71.65, a gain of Rs 15.65 or 27.95%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 61.60 | 73.90 | 57.30 | 71.60 | 15.60 | 27.86 | 66.59 | 8800931 | 752574 | 8.55 |
| NSE | 61.60 | 73.90 | 57.25 | 71.65 | 15.65 | 27.95 | 65.58 | 67619635 | 13918070 | 20.58 |
| Total | 76420566 | 14670644 | 19.20 |
The traded volume was 764.20 lakh shares which was 41.20% of the IPO size of 1854.79 lakh shares. The delivery volume was 146.70 lakh shares which was 19.20% of the traded volume and 7.91% of the IPO size. The delivery as a percentage of non-anchor portion was 11.30%. One would have thought with lack of participation from HNI and Retail, the traded volume would not be so high. The weighted average of the day was Rs 66.59 on the BSE and Rs 65.58 on the NSE.
There were two institutional trades reported on the day. The first was a buy of 51.54 lakh shares by Mirae Asset at Rs 65.61. the second was a sell trade by DB International which sold 44.62 lakh shares at Rs 62.07.
While there was a lot of short covering during the day which helped the share gain ground, it still remains an expensive share and the massive rally makes it that much more expensive. While listing day has been a success for the company its performance going forward would be watched carefully.
