Chennai-based hospitality firm Sterling Holiday Resorts India Ltd (SHRIL) has raise Rs 33.34 crore through private placement on preferential basis. The company board approved allotment of over 95.26 Lakh equity shares on a preferential basis to financial institutions inlcuding Kishore Biyani promoted Future Capital's Indus Hospitality Fund.
Interestingly according to an Economic Times report in September 2008, Lehman Brothers has invested between $80-100 million in Future Group’s $200 million in Indus Hospitality Fund. Howvever, its collapse had put a question mark over the failed US investment bank's investment in that fund.
Sterling Holidays issued up to 78,82,200 equity shares to Indus Fund for cash at Rs 35 each. Another 16,44,300 equity shares were issued to Blue Ocean Investment Trust at the same price. The company also alloted 5 lakh warrants to C Satish on a preferential basis at a subscription price of Rs 8.75 for each warrant conferring an option (to the holder) that allows subscription to one equity share at an exercise price of Rs 35 each. The funds collected through the issues will be utilised to part finance the expansion programme, repayment of debts and augment working capital of the loss-making company.
Earlier, in February, the company raised around Rs 17 crore by allotting 45.63 lakh equity shares of Rs 10 each at a premium of Rs 25 a share and 30 lakh warrants at a subscription price of Rs 3.50 each convertible after 18 months into equity shares at an exercise price of Rs 35 per warrant to India Horizon Fund (16.9 lakh shares), India Discovery Fund (16.9 lakh shares), Blue Ocean Investment Trust (11.9 lakh shares) and an individual, S. Dhanalakshmi (30 lakh warrants).
This money was used to settle some of its loans from banks and financial institutions.
According to the auditors' report filed with the exchanges, the company is also negotiating with certain creditors (both secured and unsecured) for settlement of their dues, including principal and interest. Sterling Holiday Resorts has also entered into agreements with some lenders for one time settlement of dues.
For the year ending March 31, 2009, it has reported an increased net loss of Rs 13.37 crore against Rs 90 lakh in the previous year, on a turnover of Rs 30.94 crore and Rs 36.8 crore, respectively. The promoter group has also pledged over 47 per cent (31 lakh shares) of its equity holdings in the company during the year.