Leela Hotels Plans Rs 185 Crore Investment for 5-Star Ayodhya Project

Leela Palaces Hotels & Resorts plans to invest up to Rs 185 crore in its subsidiary Buildminds Real Estate Private Limited to fund the development of its upcoming 5-star hotel in Ayodhya.

The investment will be made through the subscription of Compulsorily Convertible Preference Shares (CCPS) in one or more tranches over multiple years, depending on the project's funding requirements, according to a regulatory filing by the company.

"Buildminds is engaged in the development of our upcoming 5-star hotel at Ayodhya. The proposed investment forms part of the company's overall commitment to fund the capital requirements of Buildminds and is intended to support its ongoing business operations, project development activities and long-term growth plans. The investment shall be made in one or more tranches, depending upon the funding requirements. Being an investment in an existing subsidiary, this will not result in any change in the management control or any economic interest in Buildminds," Leela Palaces Hotels & Resorts informed the stock exchanges.

The proposed funds will be directed towards project-related expenditure, working capital and other general corporate requirements of Buildminds. The investment is planned to be made on or before the financial year 2028-2029, based on the subsidiary's capital requirements.

Leela Palaces Hotels & Resorts currently holds a 76 percent stake in Buildminds. The proposed investment will not alter the company's management control or economic interest in the subsidiary.

The planned capital infusion comes as the hospitality company continues the development of its Ayodhya hotel project, with Buildminds responsible for the project's development.