Hospitality firm Viceroy Hotels today said it has approved the proposal for raising up to $15 million or Rs 70 crore through qualified institutional placement (QIP).
The board of directors passed a resolution to issue 1 crore equity shares to qualified institutional buyers on a preferential basis to raise the said amount for its Bangalore hotel project, Viceroy Hotels said in a filing to the Bombay Stock Exchange (BSE).
The board also authorised the managing director to call for the meeting of the shareholders on February 3 for seeking their nod for the proposed capital expansion, it said.
The board also approved the additional term loan of Rs 113 crore from Canara Bank, IDBI Bank, Allahabad Bank, Syndicate Bank and Lakshmi Vilas Bank to partly finance the Bangalore hotel project, it said.
The board has also resolved to restructure assets of the under construction Bangalore Hotel into a wholly-owned subsidiary firm, it said.
It also appointed KPMG India to advise on the restructuring process, it added.
Shares of the company closed at Rs 52.80, marginally up from the previous close on the BSE.