Leela Palaces to invest up to Rs 185 crore in subsidiary Buildminds Real Estate

Leela Palaces Hotels and Resorts. Picture sourced from X.

Leela Palaces Hotels & Resorts on Monday said it proposes to invest up to Rs 185 crore in its subsidiary Buildminds Real Estate Private Limited to meet the capital requirements for the construction of an upcoming 5-star hotel in Ayodhya.

The investment in Buildminds will be made through subscription to Compulsorily Convertible Preference Shares (CCPS) in one or more tranches over one or more years, the company said in a regulatory filing.

"Buildminds is engaged in the development of our upcoming 5-star hotel at Ayodhya. The proposed investment forms part of the company's overall commitment to fund the capital requirements of Buildminds and is intended to support its ongoing business operations, project development activities and long-term growth plans.

"The investment shall be made in one or more tranches, depending upon the funding requirements. Being an investment in an existing subsidiary, this will not result in any change in the management control or any economic interest in Buildminds," Leela Palaces Hotels & Resorts informed the stock exchanges.

The proposed investment will be used for project-related expenditure, working capital requirements and other general corporate purposes of Buildminds.

According to the company, the investment will be made in one or more tranches on or before the financial year 2028-2029, depending on the funding requirements of Buildminds.

Leela Palaces Hotels & Resorts presently owns a 76 per cent stake in Buildminds. The proposed investment is not expected to result in any change in the company's management control over Buildminds.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.