The Chennai based leisure hospitality and vacation ownership company, Sterling Holidays Resorts (India) Ltd, had a dream run in its stock prices in last one month. The shares of the company reached a 52- week high today and closed today at Rs 122.90 per share at the oldest bourse, BSE. The share ran up by Rs 20.45 or 19.96 per cent till the end of the day. Not too long ago, mere twenty days back the share was trading at Rs 55.10 per share. A bulk trading of 8lakh shares were undertaken for Rs 121.86 per share in the noon which is the highest single bulk trade for the company in last 10 months.
The investor duo of billionaire Rakesh Jhunjhunwala and Radhakrishna Damani which bought 11 per cent stake in Delta Corp last year, is set to buy stake in Sterling through preferential allotment , said sources close to the development.
The company had notified on BSE onJuly 15 that it will convene a board meeting on july 20, to consider various options of raising funds including issue of shares and issue of warrants on preferential basis.
Sources add, "The promoters, Rakesh Jhunjhunwala and Radhakrishna Damani will each be alloted shares at a price band of Rs 80-85 per share, which would help raise around Rs 120-140 crore for the company." The company has been looking to raise close to Rs 130-170 crore for its expansion in international destinations like South Asia Pacific region via acquisitions. Sterling is at present headed by Sidhartha Mehta, as non executive chairman of the company, who is also the Chief executive officer of Bay Capital, a private equity firm which already owns 31 per cent stake in the company. Till date Bay Capital has invested $13.8 million.
According to BSE, the promoters of the company, R Subramanian, Sidharth Shankar S and S Dhanalakshmi at present own 14.75 per cent in the company whereas mutual funds at and FII's own 17.46 per cent..
at the end of the day on BSE to close at Rs 122.90 per share.
Sterling has a network of 14 resorts in 12 holiday destinations in India, enabling over 100,000 Vacation Ownership members The company is slated to add six new destinations to its existing list of resorts.
Calls made to Ramesh Ramanathan, managing director of the company and Sidharth Mehta went unanswered. Rakesh Jhunjhunwala could not be reached for comment.
2 comments:
Nice Article.I think one should follow the principles of these investment gurus rather than blindly following the stocks which they pick. One should follow their strategies and implement it while investing.
Thanks for dropping by my blog, n i indeed feel that blindly following someone is not the right way to go ...
research s the key...and ofcourse some luck...
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