Leela Palaces Hotels & Resorts Limited is set to invest up to INR 185,00,00,000 (Rupees One Hundred and Eighty-Five Crores Only) in its subsidiary, Buildminds Real Estate Private Limited. This investment, made through Compulsorily Convertible Preference Shares (CCPS), will fund the development of an upcoming 5-star hotel in Ayodhya. The investment is part of the company’s commitment to supporting Buildminds’ operations and long-term growth.
Major Investment in Subsidiary for Hotel Development
Leela Palaces Hotels & Resorts Limited has announced a significant investment plan to fund the development of its upcoming 5-star hotel in Ayodhya. The company proposes to invest up to INR 185,00,00,000 (Rupees One Hundred and Eighty-Five Crores Only) in its subsidiary, Buildminds Real Estate Private Limited. This investment will be made via subscription to Compulsorily Convertible Preference Shares (CCPS).
Funding Project Growth
The capital infusion is intended to support Buildminds’ ongoing business operations, project development activities, and long-term growth plans, specifically for the construction of the new hotel. The investment will be disbursed in one or more tranches over one or more years, depending on Buildminds’ funding requirements. The company stated that this investment in an existing subsidiary will not alter management control or economic interest in Buildminds.
Buildminds Overview
Buildminds Real Estate Private Limited was incorporated on April 23, 2024, and is engaged in real estate development. The proposed investment aims to meet its capital requirements for the Ayodhya hotel project, covering project-related expenditures, working capital, and general corporate purposes. Buildminds is projected to have nil turnover for the financial years FY24, FY25, and FY26, as it is in its development phase.
Investment Details
The investment is planned to be completed on or before Financial Year 2028-2029. Currently, Leela Palaces Hotels & Resorts Limited holds 76% of the equity share capital of Buildminds. The total proposed investment is expected to be the full amount of INR 185,00,00,000.
Source: BSE
