Will wait for mkt to turn favourable for QIP: Hotel Leela

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Will wait for mkt to turn favourable for QIP: Hotel Leela

In an interview to CNBC-TV18, Vivek Nair Vice Chariman and Managing Director of Hotel Leela reveals the company has had a successful road show about four-five months ago. However, he said due to the ongoing euro zone crisis, the QIP hasn't been in place.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Hotel Leela See previous management interviews See what other Experts & Brokerages are saying about Hotel Leela

CNBC-TV18's Nayantara Rai caught up with Vivek Nair, Vice Chariman and Managing Director of Hotel Leela at the Condé Nast Traveller Reader Awards to talk about the company's Qualified Institutional Placement (QIP) plans.

In his interview, Nair reveals the company has had a successful road show about four-five months ago. However, he said due to the ongoing euro zone crisis, the QIP hasn't been in place.

"Once the market improves, we can have the QIP. However, in the mean while because of the initiatives taken, the disinvestment, commercial park in Chennai and developing our vacant plots in Bangalore, Pune and Hyderabad as Leela Residencies - are the three initiatives will bring us to that target," he disclosed.

Below is an edited transcript of Vivek Nair's interview to CNBC-TV18. Also watch the accompanying video.

Q: If you were to go ahead with that QIP, how much money would you want to raise? What kind of a valuation are you looking at?

A: The amount goes to about USD 100-120 million but it will depend on the current price at that time.

Q: Like you just outlined some other initiatives to raise capital, would that mean you would raise less than USD 100-120 million?

A: No, after taking into consideration the initiatives, we would like to raise equity of 0.75-0.80:1 which is a very healthy one.

Q: So, in a nutshell you are basically saying is that though we are seeing perhaps a slowdown globally, it is not impacting Indian tourism and people are still going ahead with their expansion plans?

A: Well some of them are consolidating it. Those in Rajasthan are hoping that things will improve.