Royal Orchid Hotels has entered into a Memorandum of Understanding (MoU) with Vascon Engineers (VEL), R. Vasudevan HUF (Promoter of VEL) and Conamore Resorts (Related Party of Promoter of VEL) to acquire the remaining 50% stake in Cosmos Premises in lieu of 100% stake in Rivershore Developers (RSDPL) and settling of liabilities in the books of RSDPL on August 21, 2021. The said MoU has been approved by the Audit Committee and Board on August 21, 2021.
Pursuant to the aforesaid MoU from the total proceeds of Rs 52.50 crore received from sale of RSDPL, all the liabilities of RSDPL shall be paid and the balance amount shall be the share price. Since for the purchase of the remaining stake of Cosmos Premises the aforesaid amount of Rs 52.50 crore would be required to be re-paid to Vascon Group, there will be shortfall for the same. Hence it is proposed that ROHL would re-borrow the amount of Rs. 10.06 crore from Baljees Hotels and Real Estates (BHPL) which BHPL would receive from RSDPL.
Royal Orchid Hotels is one of India's fastest-growing hospitality brands. It caters to business and leisure travellers who value comfort, great cuisine, distinctly warm Indian hospitality, and value for money. Its modern and fully equipped hotels, resorts, long-stay suites, and inns are what make its guests return time and time again to its properties in metro cities, holiday destinations, pilgrimage sites and wildlife parks.
| Company Name | CMP |
|---|---|
| Indian Hotel | 659.55 |
| ITC Hotels | 162.45 |
| EIH | 321.55 |
| Chalet Hotels | 778.90 |
| Mahindra Holi.&Resor | 272.70 |
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