Lemon Tree Hotels Limited
Main Body
Lemon Tree Hotels Limited has executed a Joint Venture Agreement (JVA) between its wholly-owned subsidiary Carnation Hotels Private Limited and RJ Corp Limited for the development and execution of the Aurika Shillong project through Special Purpose Vehicle Arum Hotels Private Limited.
The JVA was executed on September 14, 2026. Under the agreement, RJ Corp will acquire 49% stake in Arum Hotels by subscribing to a fresh issuance of 47,65,394 (Forty Seven Lakh Sixty Five Thousand Three Hundred Ninety Four) equity shares of face value of ₹10/- each. The subscription is expected to be completed within 7 days from the effective date of the JVA.
Post-transaction, Carnation will hold 51% of the equity share capital in Arum, while RJ Corp will hold the remaining 49%. This will result in Arum ceasing to be a step-down wholly owned subsidiary of Lemon Tree Hotels and becoming a step-down subsidiary with 51% ownership.
The Board of Directors of Arum will comprise an equal number of directors nominated by Carnation and RJ Corp. Neither party is entitled to transfer or dispose of any shares in Arum to any third party other than entities within their respective affiliate groups, subject to the terms of the JVA.
RJ Corp is an unlisted public company engaged in various businesses including beverages, dairy, quick service restaurants, retail, ice-cream, and healthcare through itself or its subsidiary/associate companies. RJ Corp is not related to the promoter/promoter group/group companies of Lemon Tree Hotels.
Financial Details
During the last financial year, Arum Hotels Private Limited contributed:
- NIL turnover (0.00% of consolidated financials)
- Net worth of ₹(12.97) Lakhs (negative value)
There is no sale or transfer of existing stake in Arum by Carnation, and consequently, Carnation will not receive any consideration. The transaction involves fresh issuance of shares by Arum to RJ Corp.