Leelaventure looks to raise R2,500 cr via divestment
It is planning to divest stake in at least two of its existing properties and take them back on management contract, or raise the said amount through a rights issue, foreign currency convertible bonds (FCCB) or QIP. The company recently sold its Kovalam property in Kerala to NRI industrialist B Ravindran Pillai for R500 crore, and took it back on management contract from him for 30 years, without making a complete exit. It already manages a property in Gurgaon.
Replying to queries from FE, Vivek Nair, vice-chairman and managing director, Hotel Leelaventure, said in a letter, “The company will take a decision in the next two years on the divestment of its existing properties and taking it thereafter on long term management contract with its brand intact.” He said the company is also open to raising the money by way of rights issue, FCCB or QIP.
Of the six properties that Leela currently owns in Bangalore, Goa, Mumbai, New Delhi, Udaipur and Chennai, the company could look at divesting stake in its recently opened Chennai property and one more, which Nair refused to divulge. “Chennai
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