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 , a prominent player in the Indian hospitality sector, has achieved a significant milestone in its corporate restructuring process. Following overwhelming shareholder approval, the company has now received regulatory clearance from the Ministry of Corporate Affairs to relocate its registered office from Delhi to Haryana.

Ministry of Corporate Affairs Approval

The company received a crucial regulatory milestone with the Ministry of Corporate Affairs order approving the office relocation:

The company is now proceeding with obtaining necessary approvals and filing required e-forms with the Registrar of Companies. Stock exchanges will be updated regarding the effective date of the registered office shift.

Shareholder Voting Results

The special resolution for the office relocation had garnered overwhelming support from shareholders through postal ballot. The voting results demonstrated strong confidence in the company's strategic decision:

Voting Process and Compliance

The e-voting process was conducted with full regulatory compliance. The e-voting period remained open from September 27, 2025, at 9:00 A.M. (IST) to October 26, 2025, at 5:00 P.M. (IST). Out of 373,960 shareholders on the record date of September 19, 2025, a total of 1,451 members participated in the voting process.

Prakash Verma of M/s. Prakash Verma & Associates, Practicing Company Secretaries, served as the scrutinizer for the postal ballot. The scrutinizer's report, dated October 28, 2025, confirmed that the resolution was passed with the requisite majority as a Special Resolution.

Strategic Implications

The approval of this corporate action represents a significant step in Lemon Tree Hotels' operational optimization strategy. The relocation from the Union Territory of Delhi to the State of Haryana may provide various strategic advantages, including administrative efficiencies and better alignment with operational centers.

With the MCA approval now secured, the company's management, led by Chairman and Executive Director Patanjali Govind Keswani, can proceed with the final implementation phases. The company has committed to keeping stock exchanges informed about the effective date of the registered office shift, ensuring continued transparency with stakeholders and regulatory bodies.