Business group ITC has scaled up its holding in Hotel Leelaventure Limited, by acquiring more than one per cent through its wholly owned subsidiary, Russell Credit.
During the April-June quarter, Russell Credit picked up 1.1 per cent in the hospitality major, taking total stake to 13.98 per cent, while the promoters hold a 56.57 per cent. ITC has been accumulating Hotel Leela shares since late 2008 when the stock was trading between Rs 19-20, but has maintained that these were treasury operations.
“These are routine treasury operations,” an ITC spokesperson has said.
ITC Chairman Y C Deveshwar, was recently quizzed about ITC’s gameplan in another hotel company, EIH, and without revealing much, he said, “When the market is down, is it the right time to sell? The counter question is, is it the right time to buy?”
ITC had been buying into EIH that runs the Oberoi chain of hotels, since 2000 and has a 14.98 per cent stake. The company had maintained its holding at 14.98 per cent for a while, a shade below the earlier threshold level of 15 per cent, which would have triggered an open offer under the Securities and Exchange Board of India (Sebi) guidelines. However, under the new Sebi takeover code, shares can be acquired up to 25 per cent without triggering an open offer as per a report in ET.
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