H S India to raise funds for acquisition

H S India Ltd has announced that the Board of Directors of the Company at its meeting held on March 26, 2007 has approved the following:

1. Raising the fund upto Rs 225 Crores of which Rs 100 Crores through long-term debts, Rs 50 Crores through OFCD and Rs 75 Crores through follow-up FPO/placement of equity with strategic investors.

2. Funds raised as mentioned above are expected to be deployed as follows-

- for acquiring substantial stake exceeding 51% in two hotel Companies M/s. Ideal Hotels and Industries Ltd, located at Varanasi at amount not exceeding Rs 35 Crores and M/s. Kesar Motel Pvt. Ltd located at Ankleshwar at amount not exceeding Rs 15 Crores.

- for pre-payment of debts of financial institutions.

- for acquiring land and commercial properties at Mumbai, Jaipur and Lucknow for setting up 4 star hotel projects.

3. Convening of an Extraordinary General Meeting of the Company on April 30, 2007 to seek the Shareholders approval in respect of the above items.

Source : Equity Bulls

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