Hotel Leela in celebratory mood

Its good news for the beleaguered Hotel Leela.

Private equity fund Marigold Capital is set to acquire Leela Ventures’ 326-room Chennai Hotel.

The niche of this PE fund, Marigold is to acquire dent ridden assets and turn them around. Currently, as per the terms, the legal and financial due diligence is underway.

Though the financial details are not yet out, it is rumoured that it would have cost Marigold around Rs.700 crore. Last year, its Goa hotel was sold to Malaysian company for Rs.725 crore.

If one may recollect, Hotel Leela, after it failed to meet the CDR terms set  by lenders, they sold off the loans to ARCs. JM ARCpaid Rs.825 crore to the debtors and balance debt of Rs.3245 crore was paid as security receipts.

The stock price is reacting positively to this news of Marigold and its up over 8% at Rs.25.40 with 52-week high at Rs.27.25.