Hotel Leelaventure gained 1.4% to Rs 21.70 at 14:15 IST on BSE after the company announced that it has entered into a business transfer agreement to sell The Leela, Goa to MetTube Sdn. Bhd., Malaysia.
The announcement was made on Saturday, 19 September 2015.
Meanwhile, the BSE Sensex was down 74.39 points, or 0.28%, to 26,152.85.
On BSE, so far 3.83 lakh shares were traded in the counter, compared with an average volume of 85,820 shares in the past one quarter.
The stock hit a high of Rs 23 and a low of Rs 21.15 so far during the day. The stock hit a 52-week high of Rs 27.40 on 18 November 2014. The stock hit a 52-week low of Rs 16.85 on 4 June 2015.
The stock had outperformed the market over the past one month till 18 September 2015, dropping 0.93% compared with 5.79% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 9.18% as against Sensex's 3.31% decline.
The mid-cap company has an equity capital of Rs 93.32 crore. Face value per share is Rs 2.
Hotel Leelaventure said that Ceres Hotels, a wholly owned Indian subsidiary of MetTube Sdn. Bhd., Malaysia agreed to acquire the Goa Hotel for a total consideration of Rs 725 crore. The Goa Hotel would be transferred to Ceres by way of a slump sale under the business transfer agreement (BTA) subject to satisfaction of certain conditions precedent, including regulatory approvals.
Upon the completion of the sale which is expected to occur on or before 31 December 2015, pursuant to a Hotel Operations and Management Services Agreement, the company will continue to manage and operate the Goa hotel, and the hotel shall continue to be known as The Leela, Goa".
During the financial year ending 31 March 2015 (FY 2015), the Goa Hotel Undertaking contributed Rs 119 crore (15% of the total income) to the company's total income of Rs 762 crore.
The shareholding of the company shall remain unaffected pursuant to the aforesaid sale.
Hotel Leelaventure's reported net loss of Rs 57.67 crore in Q1 June 2015 compared with net loss of Rs 174.62 crore in Q1 June 2014. Total income rose 3.4% to Rs 162.58 crore in Q1 June 2015 over Q1 June 2014.
Hotel Leelaventure is a leading Indian luxury hospitality group founded in 1986.
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