Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hotel Leela to raise `950cr from sales of non-core assets
Hotel Leela (HLVL) has decided to reduce its debt by raising `950cr from the sale of its
non-core assets and issuing equity shares. The company plans to raise funds by selling a
major portion of the commercial office space in Chennai and to enter into joint
development agreements with reputed builders on company-owned land in Hyderabad
and Bangalore for residential or commercial development. Besides, it also plans to take up
hotel management contracts in Pune and Hyderabad. Further, the company has decided to
offer up to 14.95% of its enhanced capital to prospective investors by issue of fresh equity
shares.
We believe these measures will help in debt-reduction and consequently lower interest
costs. HLVL is well placed for growth in the industry, with the number of owned rooms
likely to rise to 1,787 by FY2012-end v/s 1,195 currently. At the CMP, the stock is trading
at 17.0x its FY2012E EPS and an EV/Room of `2.5cr, factoring in most of the positives. We
remain Neutral on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hotel Leela to raise `950cr from sales of non-core assets
Hotel Leela (HLVL) has decided to reduce its debt by raising `950cr from the sale of its
non-core assets and issuing equity shares. The company plans to raise funds by selling a
major portion of the commercial office space in Chennai and to enter into joint
development agreements with reputed builders on company-owned land in Hyderabad
and Bangalore for residential or commercial development. Besides, it also plans to take up
hotel management contracts in Pune and Hyderabad. Further, the company has decided to
offer up to 14.95% of its enhanced capital to prospective investors by issue of fresh equity
shares.
We believe these measures will help in debt-reduction and consequently lower interest
costs. HLVL is well placed for growth in the industry, with the number of owned rooms
likely to rise to 1,787 by FY2012-end v/s 1,195 currently. At the CMP, the stock is trading
at 17.0x its FY2012E EPS and an EV/Room of `2.5cr, factoring in most of the positives. We
remain Neutral on the stock.
No comments:
Post a Comment