Hotel Leelaventure buyback FCCBs worth 50 million dollar

Hotel Leelaventure,Hotel Leelaventure, one of the leading players in the Indian hospitality industry, has bought back nearly 50 million dollars foreign currency convertible bonds (FCCBs) at discount price from the international markets.

The company stated in a release, that till March 31, 2009, the company has bought back and cancelled FCCBs worth $33 million, constituting 33 per cent of its $100 million bonds due in April 2012.

Similarly, the company has also bought back FCCBs worth Euro 12.20 million (about $16.53 million), which constitutes 23.7 per cent of the Euro 51.40 million bonds due in September 2010.

Replying to a query, Mr. Vivek Nair, Vice Chairman and MD said, "Our FCCB buyback exercise will not only add to our bottomline, but also generate good savings in the redemption premium which would otherwise have been payable on maturity."

It may be recalled that last fiscal, the RBI had allowed the corporate houses to buyback FCCBs from the foreign markets if they are trading at a discount of 25 per cent from their book value.

Shares of Hotel Leelaventure closed on Monday at Rs 21.45 on the BSE, up 4% compared to previous close of Rs 20.55.