Hotel Leelaventure shares gain over 5% intraday on plans to sell properties to pay off debt

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New Delhi | Updated: August 23, 2016 5:01:44 PM

Hotel Leelaventure shares gained as much as 5.61 per cent in the early trade on Tuesday after the leading player in the domestic hospitality industry announced that it is seeking shareholder's nod to sell properties in Chennai and Delhi to pay off debt.

BSE Sensex, NSE Nifty Hotel leelaventureHotel Leelaventure shares gained as much as 5.61 per cent in the early trade on Tuesday after the leading player in the domestic hospitality industry announced that it is seeking shareholder’s nod to sell properties in Chennai and Delhi to pay off debt. (Photo: Reuters)

Hotel Leelaventure shares gained as much as 5.61 per cent in the early trade on Tuesday after the leading player in the domestic hospitality industry announced that it is seeking shareholder’s nod to sell properties in Chennai and Delhi to pay off debt. At 9.57 am, shares of Hotel Leelaventure were trading 3.37 per cent up at Rs 18.40. The scrip opended the day at Rs 18.30 and has touched a high and low of Rs 18.80 and Rs 18.10, respectively, in trade so far. Later, the scrip settled 3.09 per cent up at Rs 18.35.

Earlier, the company had sold its Goa hotel in September 2015. Now, it is looking for approval from shareholders for commencement of process of sale of certain undertaking of the company – The Leela Palace, Chennai and/or The Leela Palace, New Delhi.

The company is further looking for shareholders’ approval to increase limits for making investments, give loans, guarantees and provide securities beyond the prescribed limits.

Promoters holds around 63.88 per cent stake in Hotel Leelaventure, while public holds 36.12 per cent stake in the company, according to the data available with BSE.

For the quarter ended June 30, 2016, the company reported a standalone net loss of Rs 51.75 crore against net loss of Rs 57.67 crore in the same quarter last year. Net sales of the company jumped by 7.82 per cent year-on-year to Rs 148.98 crore for the quarter under review against Rs 138.17 crore in the corresponding quarter a year ago. Operating profit of the company jumped by 89.56 per cent yoy to Rs 30.69 crore for the quarter ended June 30, 2016 against Rs 16.19 crore in the same quarter last year.

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