Hotel Leela surges 15% on sale of IT park building

Hotel Leela Venture rallied as much as 15 percent in early trade on Tuesday as the company sold its IT park building in Chennai.

The board of directors of Hotel Leela approved sale of company's IT park building in Chennai to Reliance Industries (RIL).

On Monday, Hotel Leela executed an agreement for sale with RIL to sell the above said property for a consideration of Rs 170.17 crore, according to its release sent to exchanges.

Earlier in an interview with CNBC-TV18 (after third quarter results), Vivek Nair, vice chairman & MD, Hotel Leela had said the company had plans to reduce debt by Rs 2,750 crore in near future.

At 09:32 hours IST, shares rose 9.37 percent to Rs 26.85 on Bombay Stock Exchange. Even its trading volumes jumped 10 times to 2,51,803 equity shares as against five day average of 24,958 shares.

Earlier, on February 7 the board of directors of Hotel Leela approved corporate debt restructuring scheme.

The company posted a net loss of Rs 97 crore in the third quarter of FY13 as against loss of Rs 99.6 crore in a year ago period. Meanwhile, net sales rose 15 percent year-on-year to Rs 182.8 crore during the same quarter.