Leela Palaces Hotels & Resorts Ltd has proposed to invest up to ₹185 crore in its subsidiary Buildminds Real Estate Pvt Ltd through subscription to Compulsorily Convertible Preference Shares (CCPS).
Buildminds, incorporated on April 23, 2024, is developing an upcoming five-star hotel in Ayodhya. The investment will support its capital requirements and ongoing business operations.
Investment to be tranche-based
The proposed investment will be made in one or more tranches, depending on the subsidiary’s funding requirements.
Leela Palaces currently holds 76% of Buildminds’ equity share capital. The investment is not expected to result in any change in management control or economic interest in the subsidiary.
Ayodhya project progresses
“We are on track to open Agra, Ayodhya, and Sikkim, and Ranthambore in CY28,” said Leela Palaces Hotels & Resorts, CEO Anuraag Bhatnagar, during an earnings call.
In Ayodhya, design development and test piling have been completed. The main piling work is expected to commence by the middle or end of August, he said.