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| Panoramic to raise up to Rs 100 cr via stake sale |
| Press Trust of India / Mumbai May 31, 2009, 15:28 IST |
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Hospitality major Panoramic Universal today said it is in talks with a couple of private equity players and a strategic investor to raise up to Rs 100 crore by offloading stake to part-finance acquisitions of three-star and four-star hotels in India.
"A couple of private equity investors and a strategic investor have evinced interests in acquiring stake in the company. We are in discussions with them but, no decision has been taken yet," Panoramic Universal's Senior Vice President (Finance & Operations) Utpal Parekh told PTI.
Declining to reveal the identities of the interested parties in acquiring stake in the company, Parekh said that Panoramic Universal intends to raise Rs 75-100 crore through equity dilution.
Panoramic's shares were quoting at Rs 220 on May 29 on the Bombay Stock Exchange.
Promoters' hold 74.4 per cent stake in the company, which owns and operates 11 hotels in India, the US and New Zealand.
"We also plan to raise similar amount of debt for which lending domestic banks have given us in-principle approvals," Parekh said.
The company is also in discussion with a few foreign institutions who are willing to lend funds via ECB route at a competitive rate of 6-7 per cent.
Parekh said that Panoramic Universal has 963 rooms under operation and it plans to add aroud 200 rooms by the end of the current year.
"We have identified two projects in Manali and Goa for which due diligences are currently on. The acquisition would help us to further consolidate our position in the domestic market, which has already showing signs of improvement," he said.
Parekh said that with the slowdown, properties are available now at reasonable prices which have made acquisitions economically viable.
Panoramic Universal is also set to launch the United 21 brand, owned by the company itself, in Thane. It will house 42 rooms and a recreation club equipped with all modern amenities suitable for a city club, he said.
The consolidated net profit of the company went up by 17.54 per cent to Rs 39.93 crore for the year ended March 31, 2009 as against Rs 33.97 crore for the same period previous fiscal.
Total income of the company during the year increased to Rs 154.23 crore as compared to Rs 134.84 crore during the year ended March 31, 2008.
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