Lemon Tree Hotels forms JV for Aurika Shillong; RJ Corp to acquire 49% stake
Lemon Tree Hotels' subsidiary Carnation Hotels entered a JV with RJ Corp for the Aurika Shillong project. RJ Corp will acquire 49% of Arum Hotels by subscribing to 47,65,394 equity shares. Carnation will retain 51%. The JV agreement was executed on September 14, 2026.
The JV signifies a strategic move for project development, but the project's financial contribution is currently minimal, and the change in subsidiary status does not immediately impact the consolidated financials significantly. However, it opens avenues for future growth.
The formation of a joint venture for a new project and the infusion of capital by a strategic partner are positive developments for the company's growth prospects.
Lemon Tree Hotels Limited announced the execution of a Joint Venture Agreement (JVA) between its wholly-owned subsidiary, Carnation Hotels Private Limited, and RJ Corp Limited. The JVA pertains to Arum Hotels Private Limited (Arum), a step-down wholly-owned subsidiary of Lemon Tree Hotels, which is the Special Purpose Vehicle (SPV) for the development and execution of the Aurika Shillong project.
Under the terms of the JVA, RJ Corp will acquire a 49% stake in Arum by subscribing to a fresh issuance of equity shares. Following this transaction, Carnation Hotels will hold a 51% equity share capital in Arum, and Arum will cease to be a step-down wholly-owned subsidiary, continuing instead as a step-down subsidiary of Lemon Tree Hotels.
The JVA was executed on September 14, 2026. RJ Corp will subscribe to 47,65,394 equity shares of Arum, each with a face value of ₹10, within 7 days from the effective date of the JVA. The Board of Directors for Arum will comprise an equal number of directors nominated by Carnation and RJ Corp. Neither party can transfer its shares to a third party outside their respective affiliate groups without adhering to the JVA's terms. Arum contributed NIL turnover and had a net worth of ₹(12.97) Lakhs in the last financial year, representing 0.00% of the consolidated financial statement of Lemon Tree Hotels.
RJ Corp is an unlisted public company involved in various businesses including beverages, dairy, quick-service restaurants, retail, ice cream, and healthcare. It is not related to the promoter, promoter group, or group companies of Lemon Tree Hotels.
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Lemon Tree Hotels Limited filed this with the NSE as a statutory disclosure, categorised under strategic partnerships. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Lemon Tree Hotels Limited. Read the original for the full detail.