Hotel Leelaventure to sell 14.9%, raise Rs 600 cr

Hotel Leelaventure today said it is in talks with four private equity players to sell 14.9% equity in order to raise Rs 600 crore.

"We are currently in talks with four private equity players and will finalise deal with one of them in the next 3-4 months to raise Rs 600 crore," Hotel Leelaventure Vice-Chairman and Managing Director Vivek Nair told reporters here.

Post-equity sale, promoters holding in the firm will come down to 50.5% from 55% at the moment.

Earlier this month, the company said that its board decided to offer 14.95% of its enhanced capital to prospective investors by issue of fresh equity shares.

It is also expecting to raise about Rs 950 crore from sale of office commercial space and joint development of land owned by the firm to reduce the company's debt.

It has decided to sell a major portion of the commercial office space in Chennai and to enter into joint development agreements with reputed builders on company-owned land in Hyderabad and Bangalore for residential or commercial development.

Commenting on future expansion plans, Nair said: "We have land in Agra and Kerala, which we will develop later."

The hotel chain has already launched two new properties, one each in Udaipur and Delhi. "The Chennai property will be operational by September this year," he added.

The company's scrips ended the day at Rs 38.10 per share, up 0.66% from the previous close on the Bombay Stock Exchange.