Hotel Leela to raise R100 cr via share sale to promoter

Written by fe Bureau | Mumbai | Updated: Nov 3 2012, 07:02am hrs
Hotel Leelaventure, which entered into a plan to recast debt of Rs 4,300 crore earlier this year, said it would raise nearly Rs 100 crore from selling shares to a promoter group and approved the sale of a commercial property in Chennai for Rs 172 crore as it looks to reduce its debt burden.

The owner of the upscale Leela chain of hotels said it would sell 308.26 lakh shares to promoter Leela Lace Software Solutions at Rs 32.44 apiece, a premium of 9.2% to the stocks closing price on Thursday. The companys shares closed down marginally at Rs 29.70 on Friday.

As part of the debt restructuring, Hotel Leelas lenders agreed to significantly lower interest rates as the hotel chain pledged to raise funds through promoter investments, debt instruments and sale of non-core real estate assets.

Hotel Leelaventures July-September net loss widened to R92.49 crore from R64.90 crore in the same quarter last fiscal as occupancy rates were subdued owing to the seasonal nature of the hotel business.