Hotel Leelaventure board gives nod to raising funds worth Rs 1,000 crore

Hotel Leelaventure said on Tuesday that its board has approved raising funds of up to Rs 1,000 crore in one or more tranches through various instruments.

The hospitality chain also said the board has given its nod to issue of equity shares on preferential basis to a promoter group company to raise up to Rs 100 crore.

"The board has accorded its approval for an enabling resolution for raising of funds up to Rs 1,000 crore," Hotel Leelaventure said in a filing to the BSE.

The funds could be raised through issue of equity shares, convertible debentures, GDRs, ADRs and/or such other securities either through preferential issue and/or qualified institutional placement and/or private placement, in one or more tranches at an appropriate time, it added.

Besides, the company said, "The board has approved, subject to the consent of the members at the ensuing annual general meeting scheduled to be held on September 20, 2013, allotment of equity shares on preferential basis to a promoter group company for an aggregate value not exceeding Rs 100 crore, including premium."

Hotel Leelaventure further said its board has also approved increase in its borrowing powers from Rs 5,000 crore to Rs 6,000 crore and for creation of charge/mortgage to that extent.

The board has also accorded its consent by way of an enabling resolution for sale of land owned by the firm in Hyderabad, it added.

The firm has been looking to raise funds to pare its debt, which was about Rs 4,250 crore as on January 2012 and has been undergoing a corporate debt restructuring (CDR) programme.

Syndicate Bank, one of the CDR lenders, has nominated Tondehal Ravindranath as a nominee director and the board has approved his appointment as an additional director with effect from August 13, 2013, the company added.