Hotel Leela Venture to mobilise $130 million through share sale

Written by fe Bureaus | Mumbai | Updated: Jan 27 2010, 03:57am hrs
Hotel Leela Venture which runs The Leela Palaces, Hotels & Resorts, on Monday said it would raise up to $130 million (equivalent to approximately Rs 600 crore) through a mix of issue of equity shares via QIPs and/or FCCBs. The company has capitalised on the FCCB buyback window opened by the RBI by buying back 59% of its US dollar bonds and 24% of its euro bonds at substantial discounts to the accreted prices. The promoters have also increased their stake to 53% through creeping acquisition.Meanwhile, the company reported a growth of 41% in its net profit to Rs 28.86 crore as against Rs 20.50 crore in the same period last year. The companys total income stood at Rs 127.74 crore as against Rs 121.13 crore in the same period last year.

Commenting on the results, Vivek Nair, vice chairman and managing director, said, The third quarter revenue evidences the overall recovery in the fortunes of the hotel industry. The company had undertaken various measures for reducing cost and expense after the global meltdown and terrorist attacks in November last year which has resulted in substantial savings. Heat, light and power expenses have come down due to several steps taken by the company. The company said that there has been an increase of 21% in the foreign tourist arrivals since December 2009 compared to the previous year.

The Leela Group has expanded its presence in both the business and leisure segments with six hotels, after the commencement of Udaipur and Gurgaon properties in beginning of FY 09-10. The other projects under implementation include hotel at Chanakyapuri in New Delhi which will commence before Commonwealth Games and the hotel at Adyar Beach in Chennai. This will take the room inventory of the company to almost 2250 rooms. Apart from this, the company owns plots of land in Agra, Hyderabad and Pune and the projects in these locations will be taken up in due course.

The shares of Hotel Leela Venture closed at Rs 48.80, down 1.01% on Monday on the Bombay Stock Exchange.