Mumbai: Shares of Hotel Leelaventure Tuesday settled for the day with gains of nearly 10 percent on the boures, translating to Rs 102 crore addition to market value, after the company sold its IT Park Building in Chennai.
The company has sold its IT Park Building in Chennai to Reliance Industries for Rs 170.17 crore.
Reacting to the development, the shares of the company opened on a bullish note and then surged nearly 15.07 percent to touch an intra-day high of Rs 28.25 on the BSE.
The stock however, lost some ground and settled for the day with gains of 9.98 percent at Rs 27 on the BSE.
Accordingly, the market capitalisation of the company surged by Rs 102 crore to Rs 1,130 crore from Rs 1,028 crore yesterday.
Market participants attributed the surge in the counter to the Chennai property sale, which is likely to reduce the debt burden of the company.
"The company has executed on February 18, 2013 an agreement for sale with Reliance Industries Limited to sell the above said property for a consideration of Rs 170.17 crore," Hotel Leelaventure said in a regulatory filing yesterday.
The company had received the board of directors approval to sell the company's IT Park Building in Chennai on November 2, 2012.