Why Hotel Leela stock hit upper circuit of 20% in trade today

why-hotel-leela-stock-hit-upper-circuit-of-20-in-trade-today Why Hotel Leela stock hit upper circuit of 20% in trade today

The Hotel Leelaventure stock rose in early trade today amid a report that a consortium including Thailand’s Minor International plans to invest $350 million in the Indian hospitality firm. The stock was stuck in the upper circuit of 20% or 10.62 level after opening at 9.44 level, a gain of 6.67%.  The micro cap stock saw only buyers and no sellers in morning trade on BSE.

The stock has gained after four days of consecutive fall. It has lost 50.37% during the last one year and fallen 49.19% since the beginning of this year.

The stock is trading below its 50-day and 200 day moving average of 12.93 and 15.63.

The proposed bid is also supported by investment firm Trinity White City Ventures and includes a mix of equity and debt, a Bloomberg report cited a person with knowledge of the matter.

If the transaction proceeds, the consortium  buy a majority stake in Mumbai-based Hotel Leelaventure, the person added.

“Minor is always on the lookout for good investment opportunities, which includes Hotel Leela,” Dillip Rajakarier, chief executive officer of Minor’s hotel unit, told Bloomberg on Friday. “But nothing is set in stone. We are currently exploring the option.”

Hotel Leelaventure (HLV) is the promoter of the five-star deluxe hotels in Mumbai, Goa, Bangalore and Kovalam. . It has a management alliance with Kempinski, the oldest hotel group in Europe. All the hotels of the company are co-branded with Kempinski.

HLV is one of the leading players in hospitality sector. The company was incorporated in 1981 to set up and operate 5-star hotels.  

The company operates approximately nine hotels with approximately 2,690 guestrooms. The Leela Palaces, Hotels and Resorts owns and operates approximately five properties, and its other properties are managed. Its properties are located in Mumbai, Goa, Bangalore, Kovalam, Udaipur, Gurgaon, New Delhi and Chennai, among others. Its other properties, which are under development, ; Bhartiya city, Bangalore; Agra; Lucknow and Lake Ashtamudi, Kerala. The company offers a range of services, including spa and salon services, dining services and wedding services. The company’s subsidiary includes Leela Palaces and Resorts Limited.

Minot International is a hotel owner, operator and investor with a portfolio of over 20,000 rooms across more than 160 hotels, resorts and serviced suites under the Anantara, AVANI, Oaks, Tivoli, Elewana Collection, Four Seasons, JW Marriott, St. Regis, Radisson Blu and Minor International brands.

, the Middle East, Africa, the Indian Ocean, Europe and South America. In addition, its mixed-use business operates spas, shopping plazas and entertainment outlets, residential properties, and a points-based vacation club.

Hotel Leelaventure reported a standalone net loss of Rs 66.53 crore for the quarter ended September 30, 2018, on account of rise in expenses. The company had posted a net loss of Rs 24.44 crore for the corresponding period of the previous fiscal.

Standalone total income of the company stood at Rs 167.66 crore for the quarter under consideration. It was Rs 159.81 crore for the same period year ago. Total expenses for the quarter stood at Rs 241.48 crore against Rs 184.25 crore for the year-ago quarter.

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