Hotel Leelaventure rose 7.66% to Rs 23.20 at 13:23 IST on BSE after the company said it plans to sell its hotels in Chennai and Goa.
The announcement was made after market hours yesterday, 2 March 2015.
Meanwhile, the BSE Sensex was up 90 points, or 0.31%, to 29,549.14.
On BSE, so far 7.21 lakh shares were traded in the counter, compared with an average volume of 1.33 lakh shares in the past one quarter.
The stock hit a high of Rs 24.10 and a low of Rs 22 so far during the day. The stock hit a 52-week high of Rs 30.80 on 3 July 2014. The stock hit a 52-week low of Rs 15.15 on 4 March 2014.
The stock had underperformed the market over the past one month till 2 March 2015, falling 5.07% compared with 1.16% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 9.64% as against Sensex's 3.57% rise.
The small-cap company has an equity capital of Rs 93.32 crore. Face value per share is Rs 2.
Hotel Leelaventure announced that it has engaged JM Financial Institutional Securities ("JM Financial") for sale of its Chennai and Goa hotels. In accordance with the powers delegated by the company's board, the assets sale committee, in its meeting held on 2 March 2015 has decided to commence the process for sale of its hotels in Goa and Chennai. Accordingly, an advertisement is being released inviting interested parties to submit their Expression of Interest (EOI) to JM Financial, the company said.
According to media reports, the company is selling its properties to cut debt. The company reportedly had a debt of around Rs 4500 crore as of last year.
Hotel Leelaventure reported a net loss of Rs 125.04 crore in Q3 December 2014, higher than net loss of Rs 100.59 crore in Q3 December 2013. Net sales rose 5.7% to Rs 213.60 crore in Q1 June 2014 over Q1 June 2013.
Hotel Leelaventure owns and manages The Leela Palaces, Hotels and Resorts.
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