On Tuesday Hotel Leela rallies 3% on JM Financial ARC deal
On Tuesday, it was seen that the Hotel Leela venture went up over 3 per cent. This was observed when the board approved an enabling resolution that allows it to transfer a majority stake to JM Financial Asset Reconstruction Company. The co-chairman of hospitality chain’s has given a hint that there is possibility of dealing with a consortium of three foreign entities to find a solution to its debt problem.
Today, the scrip was up 3.13 per cent at Rs 18.10 at around 9.40 am. The BSE Sensex was up 17 points, or 0.05 per cent, at 35,500. On Monday, the Mumbai-based company has stated that its board approved the enabling resolution to issue up to 125 crore shares in one or more tranches to JM Financial ARC, which currently holds most of its debt.
As per the data of BSE, the potential share issue could raise the ARC’s stake in Leelaventure to 75 per cent, from the current 26 per cent.
The Managing Director of Leelaventure, Dinesh Nair, has also stated that the company had tabled a letter from a consortium of Blackrock, SSG Capital and RB Capital at its board meeting, stating that they are assessing the debt situation. He also went on saying that the company is looking at finding a holistic solution to the debt.