Hotel Leelaventure rose 4.05% to Rs 24.40 at 11:30 IST on BSE on reports US-based private equity fund Marigold Capital agreed to buy the company's 326 room hotel in Chennai.
Meanwhile, the S&P BSE Sensex was up 63.41 points, or 0.20% to 31,765.66.On the BSE, 3.32 lakh shares were traded in the counter so far, compared with average daily volumes of 1.04 lakh shares in the past one quarter. The stock had hit a high of Rs 25.40 and a low of Rs 24.30 so far during the day. The stock hit a 52-week high of Rs 27.25 on 10 May 2017. The stock hit a 52-week low of Rs 15 on 25 November 2016.
The stock had outperformed the market over the past one month till 4 September 2017, rising 0.86% compared with 1.93% decline in the Sensex. The scrip had underperformed the market in past one quarter, falling 3.70% as against Sensex's 1.64% rise. The scrip had outperformed the market in past one year, rising 32.11% as against Sensex's 11.11% rise.
The small-cap company has equity capital of Rs 93.32 crore. Face value per share is Rs 2.
Marigold Capital is a fund specialising in buying debt-ridden hotels and commercial real estate properties and turning them around. As per the report, the legal and financial due diligence for the transaction is on after Marigold agreed to acquire the asset.
Reports estimated that Marigold is buying Leela Palace Chennai located on Adyar Sea Face for around Rs 700 crore. The sea facing hotel boasts 295 deluxe or premiere rooms and 31 suites besides the banqueting space spread over 28,000 square feet.
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Hotel Leelaventure reported net profit of Rs 13.42 in Q4 March 2017 compared with net loss of Rs 228.87 crore in Q4 March 2016. Net sales rose 2.3% to Rs 198.35 crore in Q4 March 2017 over Q4 March 2016.
Hotel Leelaventure is a leading Indian luxury hospitality group founded in 1986.
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