Lemon Tree Hotels has categorically denied media reports suggesting that private equity giant Warburg Pincus is in negotiations to acquire a stake in the hospitality chain. In an official clarification filed with stock exchanges, the company termed the reports as "factually incorrect and misleading," contradicting earlier market speculation that had driven shares up over 4%.

Company's Official Clarification

In response to exchange queries about the media reports, Lemon Tree Hotels submitted a comprehensive clarification stating that no negotiations, discussions, agreements, or proposals are ongoing with Warburg Pincus. The company specifically addressed claims about stake acquisition from APG Strategic RE Pool and potential preferential allotments.

Strategic Evaluations in Ordinary Course

While denying specific acquisition talks with Warburg Pincus, the company acknowledged that it regularly evaluates strategic and financial options in the ordinary course of business, including investments related to its subsidiaries. However, the company emphasized that all such discussions are provisional unless followed by proper approvals and definitive documentation.

Regulatory Compliance Statement

Lemon Tree Hotels confirmed its compliance with disclosure requirements under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The company stated that no material information requiring mandatory disclosure has been withheld from stock exchanges that could explain recent trading movements.

Expected Impact Assessment

The company clarified that since the media reports do not relate to any confirmed or approved transaction and contain factually incorrect statements, they do not reflect the actual status of any company proposal or decision. Consequently, Lemon Tree Hotels does not expect the media reports to have any material impact on its operations, financial position, or business prospects.

Market Context

The clarification comes after shares had surged over 4% following reports of a potential two-tranche deal structure involving Warburg Pincus. The reported transaction was said to include acquisition of APG Strategic RE Pool's 14.99% stake and a preferential allotment, which would have triggered an open offer under regulatory requirements. The company has committed to making appropriate disclosures if any material developments occur in the future.

Lemon Tree Hotels Limited has disclosed receiving orders and challans from regulatory authorities totaling ₹16,736.00, as mandated under SEBI Regulation 30. The disclosure, made on December 31, 2025, follows a previous communication dated November 30, 2025.

Regulatory Orders Received

The company received orders from two separate authorities regarding different compliance matters. The disclosure provides detailed information about each order as required under SEBI regulations.

Nature of Violations

GST-Related Order

The larger order from the Gurugram tax authority pertains to short payment of Service Tax on abated value of service charge collected from customers. The order amount of ₹11,736.00 includes tax, interest, and penalty components for the financial year 2018-19.

Waste Management Violation

The Municipal Corporation Chandigarh issued a challan for ₹5,000.00 related to failure to deal with construction and demolition waste in accordance with Solid Waste Management Rules. This represents a current operational compliance issue.

Financial Impact Assessment

Lemon Tree Hotels stated that there is no material impact on financial operations except to the extent of the amounts specified in the orders. The total financial exposure from both orders amounts to ₹16,736.00, which the company considers non-material to its overall operations.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company referenced recent SEBI circulars dated November 11, 2024, and December 31, 2024, in making this disclosure.

The disclosure was signed by Pawan Kumar Kumawat, Company Secretary and Compliance Officer, ensuring proper corporate governance protocols were followed in the communication to stock exchanges.