Hyderabad-based Viceroy Hotels Ltd is raising Rs 70 crore ($15 million) in private equity funding for its Bangalore hotel project. The 300-room project, which will be hived off into a subsidiary called Viceroy Bangalore Hotels Pvt Ltd, is selling a 49% stake to JP Morgan India Property Mauritius Company. Viceroy is also coming with a qualified institutional placement (QIP) to raise another Rs 70 crore or $15 million. The board of Viceroy approved these decisions at its meeting held on January 7, 2010.
Shares of Viceroy were up by more than 3% in the morning trade today, touching Rs 54.45, before coming down to Rs 53.70. Viceroy reported revenues of Rs 103 crore for FY09 with a net profit of Rs 6.7 crore. The company’s shareholders include billionnaire investor Rakesh Jhunjhunwala (11%) and Anil Ambani’s Sonata Investments (5.9%).
Viceroy has also raised a debt of Rs 113 crore from Canara Bank, IDBI Bank, Allahabad Bank, Syndicate Bank and Lakshmivilas Bank to part finance its Bangalore hotel project. The project has a total cost of Rs 311 crore. The board of Viceroy has also approved restructuring of the Bangalore project into a new unit, for which it has appointed KPMG as advisors and L V V Iyer and Associates as advocates.
Viceroy is building a 21 storey hotel overlooking the famous Bangalore Racecourse. The property would be managed by the Marriott International and branded as Renaissance. The hotel is expected to commence operations in FY 2011.
Viceroy has also been planning a new Rs 620-crore hotel project in Chennai and plans to add rooms to its hotel in Hyderabad.