Shares of Lemon Tree Hotels opened with a gain of more than 12 percent on Friday to hit an intra-day high of Rs 77.15 for a share. The stock gained on reports of the hospitality firm forming a joint venture with Warburg Pincus to develop rental housing projects envisaging investments of Rs 3,000 crore.

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The mid-cap hospitality and hotels stock has been gaining for the last 2 days and has risen more than 9 percent in the period.

The stock traded higher than 5 day, 20 day, 50 day and 100 day moving averages, quoting at Rs 74.35 for a share, higher by 8.62 percent on the NSE at 9.57 am. It has returned 4.28 percent in the last 1 month.

HDFC Securities has a 'buy' rating on the stock with a price target of Rs 86, the brokerage said in its report in mid-November.

The JV, in which an affiliate of global private equity firm Warburg Pincus and Lemon Tree Hotels will hold 68 percent and 30 percent stake, respectively, plans to develop a platform that would provide affordable and conveniently located co-living spaces for students and young professionals, the company said in a statement.

The JV partners will initially invest Rs 1,500 crore in equity over a period of time followed by an additional infusion of Rs 1,500 crore in equity at the option of the partners, the statement added.

Speaking in an exclusive interview with CNBC-TV18 on Friday, Patu Keswani, founder chairman and managing director of Lemon Tree, said that the JV focuses on co-living space in India and the target audience for the new offering are individuals below 35 years of age.

Meanwhile, benchmark indexes trade higher with the Sensex rising more than 300 points to trade above 36,100 mark. The Nifty traded more than 85 points around 10,865.

(With inputs from PTI)

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First Published:Dec 28, 2018 10:29 AM IST