Hospitality chain Lemon Tree Hotels has filed draft papers with markets regulator Sebi to float an initial public offering. The public offer comprises sale of up to 195,797,000 equity shares by the existing shareholders, including Maplewood, Whispering Resorts, Palms International and RJ Corp, according to the draft red herring prospectus (DRHP).

The offer will constitute up to 24.90 percent of the post-offer paid up equity share capital of the company. Explaining the reasons behind the IPO, Lemon Tree Hotels said it aims to achieve the benefits of listing the equity shares on the stock exchanges. "Our company expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity to our shareholders. The listing will also provide a public market for the equity shares in India," it added. SBI Life IPO: All You Need To Know About This Biggest IPO

Kotak Mahindra Capital Company, CLSA India, J P Morgan India and YES Securities will manage the company's public issue. The equity shares are proposed to be listed on the BSE and the National Stock Exchange (NSE).

The company has 40 hotels with 4,300 rooms in 24 cities across the country. Founded in 2002 by Patu Keswani, the company has hotels under four brands Lemon Tree Premier, which is an upscale brand; Lemon Tree Resorts, a leisure segment brand; Lemon Tree Hotels, a midscale brand and the economy brand Red Fox Hotels. 6 Biggest Mistakes Stock Market Investors Makes

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