Viceroy Hotels gallops on high volumes

Viceroy Hotels surged 13.54% to Rs 21.80 at 14:30 IST on BSE, after the company said that the J.W. Marriott deal had been concluded in favour of 'Ceebros Hotels', Chennai.

The announcement was made during market hours today, 1 January 2014.

Meanwhile, the BSE Sensex was down 17.75 points, or 0.08%, to 21,152.93

The stock jumped on high volume. On BSE, so far 14.27 lakh shares were traded in the counter as against average daily volume of 27,293 shares over the past one quarter.

The stock saw high intraday volatility. It jumped as much as 17.18% at the day's high of Rs 22.50 so far during the day. It fell as much as 8.59% at the day's low of Rs 17.55 so far during the day. The stock had hit a 52-week high of Rs 27.75 on 23 January 2013 and a 52-week low of Rs 13.55 on 20 August 2013.

The stock outperformed the market over the past one month till 31 December 2013, rising 21.9% compared with the Sensex's 1.82% rise. The scrip also outperformed the market in past one quarter, gaining 25.9% as against Sensex's 9.24% rise.

The small-cap company has an equity capital of Rs 42.41 crore. Face value per share is Rs 10.

Viceroy Hotels said that the J.W. Marriott deal had been concluded in favour of 'Ceebros Hotels', Chennai as per the resolution passed by the shareholders and after reaching a settlement with the bankers of 'Chennai Project Division'.

It may be recalled that Viceroy Hotels' board of directors at its meeting held on 8 May 2013, approved the proposal to sell the entire 'Chennai Project Division' comprising of 'Chennai Hotel Project' and "Chennai Residential Project" to Ceebros Hotels, Chennai for a total consideration of Rs 480 crore.

Viceroy Hotels reported consolidated net loss of Rs 1.83 crore in Q2 September 2013, higher than net loss of Rs 1.15 crore in Q2 September 2012. Net sales fell 4.8% to Rs 25.17 crore in Q3 December 2013 over Q3 December 2012.

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