JM Financial ARC to own 75% of Leela; promoter's stake will shrink to 15.9%

Meanwhile, Bank of Baroda has put on sale its exposure to Hotel Leelaveture, worth Rs 464.5 million

The promoters of Hotel Leelaventure that owns and manages Hotel Leela & Resorts might cede majority stake in the hospitality company.

This seems possible with a proposed share sale to JM Financial Asset Reconstruction Company (JMFARC), for conversion of debt into equity. After the transaction, which will take place in tranches after requisite approvals, JMFARC will control 75.2 per cent in the company, against 26 per cent it did at the end of March quarter, while promoter’s stake will drop to 15.9 per cent from 47.2 per cent in the same period. The move marks yet another effort by the