Hotel Leelaventure mulls to up borrowing limit to Rs 5K cr

Hotel Leelaventure today said it plans to raise its borrowing limit to Rs 5,000 crore from Rs 4,000 crore, for which it has shareholders' approval through a postal ballot.

"As the hotel industry is capital intensive and the company is expanding rapidly, the increase in limits of borrowing powers is required. It is therefore proposed to increase this limit from existing Rs 4,000 crore to Rs 5,000 crore," the company said in a filing to the Bombay Stock Exchange.

The board of the company in 2009 had fixed the current borrowing limit, which is now being sought to be increased.

 

The results of the postal ballot will be announced on April 19, the company said.

Hotel Leelaventure has set up a 80 room hotel in Udaipur, Rajasthan and a 260 room hotel in Delhi. It is also setting up a 329 room hotel and a commercial building in Chennai.

"The total investment in these properties is about Rs 3,200 crore. The company has also invested in land in Pune and Hyderabad and plans to set up hotels in Agra and Lake Ashtamudi in Kerela," the filing said.

The company is currently in talks with four global private equity firms to raise Rs 600 crore by selling 14.9% stake.