Lemon Tree Hotels, on Sunday, disclosed to stock exchanges that its wholly-owned subsidiary, Carnation Hotels Private Ltd, has signed a Joint Venture Agreement (JVA) with RJ Corp for the development of the Aurika Shillong project.
Under the agreement, RJ Corp will acquire a 49 per cent stake in Arum Hotels Private Ltd, the Special Purpose Vehicle (SPV) set up for the project, by subscribing to a fresh issuance of 47,65,394 equity shares at a face value of ₹10 each. Carnation will retain the remaining 51 per cent equity in Arum. The share subscription is expected to be completed within seven days of the JVA’s effective date.
Consequently, Arum will cease to be a step-down wholly-owned subsidiary of Lemon Tree Hotels and will instead become a step-down subsidiary in which the company holds majority control through Carnation.
The board of Arum will comprise an equal number of directors nominated by each party. Neither Carnation nor RJ Corp may transfer their shares in Arum to any third party outside their respective affiliate groups.
RJ Corp is an unlisted public company with interests spanning beverages, dairy, quick service restaurants, retail, ice-cream and healthcare. The company is not related to Lemon Tree’s promoters or promoter group.
Lemon Tree noted that Arum contributed nil turnover and a net worth of negative ₹12.97 lakh to the company’s consolidated financials in the last financial year.
Published on September 15, 2026
