Lemon Tree Shares Surge 2%, Cementing Spot As A Stock To Watch
On Monday, shares of Lemon Tree Hotels jumped almost 2%, thus keeping the recent upward trend alive. What is the reason for the excitement? Investors are having a big talk about the company’s large restructuring plan, which is believed to give clarity in growth paths as well as in the focus. The global private equity giant Warburg Pincus coming in is another reason why the stock suddenly feels like a hot ticket!
Brokers are also giving out optimistic notes, pointing to the potential value unlocking and stronger balance sheets. Lemon Tree’s combination of strategy, smart partnerships, and market buzz has already made it a stock worthy of attention for both traders and curious investors.
Lemon Tree Hotels Share Price Today
Lemon Tree Hotels shares climbed to ₹152.8 by 9:50 am, hitting an intraday high of ₹155.99. Up 11.6% over the past year, the stock is buzzing among investors, valuing the hotel chain just under ₹12,100 crore, a mix of steady growth and market curiosity!
What’s Happening At Lemon Tree Hotels?
Lemon Tree Hotels is in the middle of a huge change, and investors are paying attention! The company’s restructuring plan will segregate the group into two main platforms, providing laser-like focus and clarity. Specifically, Lemon Tree Hotels will operate as an asset-light hotel management and branding firm, streamlining operations across its entire portfolio. On the other side, Fleur Hotels will emerge as the asset-heavy ownership and development platform, acquiring physical hotel properties and contributing to the company’s future growth.
As if that wasn’t enough, global private equity giant Warburg Pincus has announced its entry into the deal by purchasing APG’s entire 41.09% stake in Fleur Hotels. Moreover, Warburg has pledged to infuse ₹960 crore into the company in several tranches, providing the required capital for expansion and strengthening the balance sheet. This is likely to be a value-unlocking move, reducing leverage and offering investors a clearer view of both entities’ growth potential. Lemon Tree is positioning itself for a new chapter of focused and sustainable growth.
Shareholding Post-Restructuring
- Lemon Tree Hotels shareholders: 32.96% of Fleur Hotels
- Lemon Tree Hotels: 41.03%
- Warburg Pincus: 26.01%
Fleur Hotels will own 41 hotels (5,813 keys), while Lemon Tree will manage 89 hotels (6,011 keys) under an asset-light model.
Brokerage Ratings and Market Sentiment
- Nuvama: ‘Buy’ with target ₹178; cites strategic PE entry, composite reorganisation, stronger long-term profile
- Investec: ‘Buy’ with target ₹187; expects Fleur demerger to unlock value and a zero-debt, high-growth platform
Lemon Tree Restructuring: Fleur Listing Soon, Dividend Policy on the Horizon
The transformation of Lemon Tree is still ongoing! Fleur Hotels, within the next 12–15 months, will emerge as a separate public company through an IPO, while Lemon Tree will disclose its dividend policy after the restructuring is complete. Investors are likely to stay very alert, as significant changes, new clarity, and possibly even more rewards are on the horizon!
(With Inputs)]
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Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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