NEW DELHI: Hospitality firm Hotel Leelaventure today said it will raise Rs 1,950 crore through sale of equity and assets, and foreign currency convertible bonds to partly repay its debt of Rs 3,800 crore.
"We expect an inflow of Rs 1,950 crore, which will be primarily used to reduce the current debt of Rs 3,800 crore," Hotel Leelaventure Vice-Chairman and Managing Director Vivek Nair told reporters here.
He said the company was close to concluding a preferential allotment of equity shares in the next 6-8 weeks time to private equity investors.
"There would be stake sale of about 14.95 per cent to either one or two players for about Rs 600 crore," Nair said.
The stake sale will bring down promoters' equity in the company from 55 per cent at present to about 50.5 per cent.
He, however, said the promoters will try to maintain their stake holding in the company to around 55 per cent in future through creeping acquisitions as per SEBI guidelines.
"We have also created business parks in Chennai and Bangalore next to our hotels, which we intend to sell in the next two months. The company is also building upmarket residential complexes in Pune, Hyderabad and Bangalore for selling," Nair said.
Asset sales would bring in another Rs 950 crore into the company, he added.
Besides, in the next 5-6 years the company expects to raise Rs 400 crore through FCCBs, Nair added.
The proceeds from the stake and asset sales along with that from FCCBs would be utilised to serve the current debt, he said, adding post the reduction, the company would have a debt equity ratio of 1.5:1.
Hotel Leelaventure had taken debt to the tune of Rs 3,800 crore to finance setting up of new properties, including those in Udaipur and Chennai.
The company scrip closed at Rs 43.05 per piece, up 4.36 percent from its previous close on Bombay Stock Exchange .
7.53 lakh applicants are vying for the flats, located in areas like Vasant Kunj, Mukherjee Nagar, Motia Khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli. There are one, two and three bedroom flats with the prices ranging from Rs 9 lakh to Rs Rs 1.12 crore.
The housing scheme was launched on November 25, 2010. Asked about the allegations of irregularities that had cropped up during the last draw of lots for its housing scheme, Delhi Development Authority officials had earlier said that all necessary checks and balances were in place.
"The draw is being held in Noida only due to the fact that the number of applicants and the number of flats being allotted under the scheme is high as compared to earlier schemes. CDAC has better wherewithal and expertise to conduct the draw of such a magnitude and it is not possible to transport the equipment from there," an official had said.
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