Sterling Holiday Resorts to raise Rs 120cr for expansion

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Sterling Holiday Resorts to raise Rs 120cr for expansion

Sterling Holiday Resorts India Ltd today said it plans to raise Rs 120 crore through the issuance of equity shares and warrants on a preferential basis to fund expansion plans.

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Sterling Holiday Resorts India today said it plans to raise Rs 120 crore through the issuance of equity shares and warrants on a preferential basis to fund expansion plans.

The company's board of directors, at its meeting held on July 20, has decided to hold an Extraordinary General Meeting (EGM) on August 13, 2011, to seek shareholders' approval for the same.

"The infusion of more capital into the company will enable Sterling to expand its footprint and fund the ongoing growth plans," Sterling Holiday Resorts Chairman Siddharth Mehta said in a statement. He said leading investors have expressed interest in investing in the company.

"We have been re-building the organisation for the last two years and with the hiring of some of the best professionals in the business," Mehta said.

After the proposed capital infusion, the company is well positioned to become one of the leading vacation ownership and leisure hospitality firms in India, he added. Besides seeking approval for an increase in its authorised share capital, the company will also seek shareholders' nod for the appointment of Ramesh Ramanathan as Managing Director.

According to media reports, billionaire Rakesh Jhunjhunwala and investor Radhakrishna Damani are likely to pick up one crore shares in the company.
Company officials were not available for comment on the these reports or to provide details on the planned expansion.

Since its incorporation in 1986, Sterling has built a network of 14 resorts at holiday destinations in India, with over 100,000 members. The company's scrip was trading at Rs 113.55 on the Bombay Stock Exchange today, down 7.61% from its previous close.