Sayaji Hotels to seek approval for FCCB issue

Indore-based Sayaji Hotels (SHL) will hold an extraordinary general meeting on May 3, as it seeks shareholder approval for its proposed foreign currency convertible bond (FCCBs) and debt issues, said Sajid Dhanani, managing director, Sayaji Hotels.

The company is planning to raise $8 million through a foreign currency convertible bond issue.

The company would also be raising Rs. 33 lakh debt from a non-banking financial company (NBFC), Clear Water Capital Partners India Pvt Ltd. Besides this, the company will also issue an additional 34.15-lakh shares at Rs 66 per share to promoters and non-promoters. The shares of the company are trading at Rs 70.65, up 4.98 per cent at the Bombay Stock Exchange.

The company plans to use the proceeds for funding its expansion in Pune and other cities. According to Dhanani, "We are planning to open a 200-room hotel in Pune with seven restaurants and 10 banquet halls, besides other facilities."

"We are also planning to construct service apartments in Pune," added Dhanani. The company also has plans to launch 100 restaurants across the country under the brand name 'Barbeque Nation'.

"We have identified Bangalore and Hyderabad for entering into south India planned between July and August this year," he said.

The hotel group is also planning to add 33 rooms, three restaurants and two banquet halls to its existing set up at Indore.

A part of the proceeds will also be usedd to develop another hotel in Indore. The property will be developed by Karan Garden. "We are investing close to Rs 30 crore in the project," said Dhanani. "We will start off with 60 rooms, which will be increased to 100 rooms later. We also have plans to add two restaurants, two banquet halls and swimming pool to the new hotel," he added.