In a spin off of its 300-room Bengaluru project, Viceroy Hotels is looking to raise Rs70 crore in private equity from investment bank JP Morgan in exchange for 49%.
In its board meeting on January 7, Viceroy approved the creating of the Viceroy Bangalore Hotels Pvt Ltd and selling 49% to JP Morgan India Property Mauritius Company.
Viceroy reported revenues of Rs103 crore for FY09 with a net profit of Rs6.7 crore. The company's shareholders include billionnaire investor Rakesh Jhunjhunwala (11%) and Anil Ambani's Sonata Investments (5.9%).
Viceroy has also raised a debt of Rs 113 crore from Canara Bank, IDBI Bank, Allahabad Bank, Syndicate Bank and Lakshmivilas Bank to part finance its Bengaluru hotel project which is presently estimated at Rs311 crore.
The hotel in question is a 21 floor building overlooking the Bangalore Racecourse, the management of which has been contracted to Renaissance.
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