Lemon Tree gets 'magnolia' flavor

Lemon Tree is showing a major rise in volume – going up over 9 times. The stock price went up over 12% to Rs.77.15. Its 52-week high and low stands at Rs.91 and Rs.57.30 respectively.

The market is happy with its announcement that it has entered into a JV with Magnolia Grove investment, an affiliate of Warburg Pincus group. The JV company i.e., Hamstcde Living Private Limited will construct, acquire, develop, operate and lease short— and long—stay real estate projects, with a primary focus on student housing, co-living for working professionals/adults and multi-family users.

In this JV, Magnolia will hold 68% stake while Lemon Tree will hold 30% and 2% will be held by Patanjali Keswani, promoter  and CMD of Lemon Tree.

The JV is to see an investment of Rs.3000 crore of which Rs.1500 crore in two parts will come via issue equity/ compulsorily convertible preference shares.