Viceroy Hotels to raise Rs 70cr via QIP

Viceroy Hotels Limited, a city-based hospitality player, is planning to raise an amount of up to $15 million (approximately Rs 70 crore) through a qualified institutional placement (QIP) of equity shares not exceeding 10 million of Rs 10 each at a premium.

A proposal to this effect was approved by the board of directors of the company at its meeting held on Thursday. The board also okayed the additional term loan sanctions of Rs 113 crore from Canara Bank, IDBI Bank, Allahabad Bank, Syndicate Bank and Lakshmi vilas Bank to part finance its Bangalore hotel project, the company said in a filing to the BSE.

Further, the board approved the proposal of the management to restructure the Bangalore hotel assets under construction into a wholly-owned subsidiary – Viceroy Bangalore Hotels Private Limited – besides giving a nod to the letter of intent signed with JP Morgan India Property Mauritius Company. The terms are that the investor should take 49 per cent equity stake for an amount of Rs 70 crore in the Bangalore hotel subsidiary, the company added.

Viceroy Hotels’ scrip was up 0.09 per cent to end the trade at Rs 52.80 on the BSE on Thursday, over the previous close of Rs 52.75.