Lemon Tree Hotels has executed a Joint Venture Agreement (JVA) for its subsidiary, Arum Hotels Private Limited, which is developing the Aurika Shillong project. The JVA involves RJ Corp acquiring a 49% stake in Arum through a fresh equity issuance, while Carnation Hotels Private Limited (a wholly-owned subsidiary of Lemon Tree) will retain a 51% stake. This transaction means Arum will no longer be a wholly-owned step-down subsidiary.
Joint Venture Agreement for Aurika Shillong Project
Lemon Tree Hotels announced the execution of a Joint Venture Agreement (JVA) concerning its subsidiary, Arum Hotels Private Limited (“Arum”). Arum is the Special Purpose Vehicle established for the development and execution of the Aurika Shillong project.
Partnership with RJ Corp
The JVA has been entered into between Carnation Hotels Private Limited (“Carnation”), a wholly-owned subsidiary of Lemon Tree Hotels, and RJ Corp Limited (“RJ Corp”). Under the terms of the JVA, RJ Corp will subscribe to a fresh issuance of equity shares in Arum, acquiring a 49% stake. Following this transaction, Carnation will hold the remaining 51% of the equity share capital in Arum.
Impact on Subsidiary Status
As a result of this transaction, Arum Hotels Private Limited will cease to be a step-down wholly owned subsidiary of Lemon Tree Hotels. It will continue to operate as a step-down subsidiary. The agreement details include the appointment of an equal number of directors on Arum’s board by both Carnation and RJ Corp, and restrictions on the transfer of shares to third parties outside their respective affiliate groups.
Details of Share Issuance
In connection with the JVA, Arum will issue 47,65,394 Equity Shares of a face value of ₹10/- each to RJ Corp. The net worth contributed by Arum to the consolidated financial statements of Lemon Tree Hotels during the last financial year was reported as a loss of ₹(12.97) Lakhs, representing (0.00%) of the consolidated figures. The JVA was executed on September 14, 2026.
Source: BSE
