Hotel Leela trims early gains; stock up 0.5% at close

Trimming most of its early gains, shares of Hotel Leelaventure ended 0.5 per cent higher today in an overall sluggish market, even as the company entered into a pact with Malaysia-based MetTube to sell Goa property for Rs 725 crore as part of its debt restructuring process.
After rising 7.47 per cent to Rs 23 in intra-day session, shares of the company later gave up most of the gains and finally ended at Rs 21.50, up 0.47 per cent on the BSE.
At the NSE, the stock rose by 0.23 per cent to Rs 21.45 at close.
In the stock market, the benchmark BSE Sensex ended 25.93 points down at 26,192.98.

The property will be acquired by Ceres Hotels Private, a wholly-owned Indian subsidiary of MetTube.
However, Leelaventure will continue to operate the hotel under Leela brand.

Leelaventure's board at a meeting on Saturday decided the sale of entire undertaking of the company pertaining to the hotel in Goa, The Leela Goa, on slump sale basis for Rs 725 crore.
The hotel would be transferred through business transfer agreement to Ceres Hotels.
The company reportedly had a debt of around Rs 5,000 crore as of March this year. As per the terms of a Corporate Debt Restructuring (CDR) package, the company had to reduce its debt through sale of assets.