| Fund Raise Limit | ₹107.00 CrRights Issue |
|---|---|
| Market Cap | ₹867.85 CrMid-cap |
| Revenue TTM | ₹143.20 CrOperating |
| RSI | 32.14Neutral Zone |
| Deal value | ₹107 Cr |
| Share of market cap | 12.3% |
Key highlights
- Board approved fund raising not exceeding ₹107.00 Crore via rights issue
- Issuance will consist of fully paid-up equity shares with a face value of ₹10 each
- Rights issue is restricted to existing shareholders, excluding Promoter and Promoter group
- Rights Issue Committee established to finalize pricing, ratio, and record date
- Draft Letter of Offer approved for regulatory submission and in-principle approval
What Is the Fund Raise?
The Board of Directors of Viceroy Hotels has authorized a significant capital infusion through a rights issue of fully paid-up equity shares. This issuance is targeted at existing shareholders, specifically excluding the Promoter and Promoter group, for a total consideration not exceeding ₹107 crore. To facilitate the execution of this corporate action, the company has constituted a Rights Issue Committee.
This body is empowered to determine the final issue size, entitlement ratio, pricing, and the specific record date. The board also approved the Draft Letter of Offer, signaling the start of the regulatory process for in-principle approval from stock exchanges.
Business Overview
Viceroy Hotels Limited, headquartered in Hyderabad, is a key player in the South Indian hospitality market, owning prominent properties such as the Marriott and Courtyard by Marriott. The company recently transitioned through a corporate insolvency resolution process, resulting in a restructured shareholding pattern where the promoter group now holds an 84.11% stake. Its primary business revolves around premium hotel operations, catering to both business and leisure segments.
The current management is focused on stabilizing operations and optimizing the performance of its existing room inventory in the competitive Hyderabad hospitality corridor.
Financial Context
- Operating revenue for the trailing twelve months stands at ₹143.2 crore, reflecting steady top-line performance
- The company maintains a high promoter holding of 84.11%, with zero shares currently under pledge
- Quarterly operating profit margins were reported at 29.75% for the period ending March 2026
- Net profit for the trailing twelve months reached ₹18.32 crore, despite a recent decline in annual growth metrics
- The stock has delivered a 1-year return of 33.77%, significantly recovering from its three-year low of ₹1.83
Industry Context
The Indian hospitality sector is currently witnessing a robust recovery cycle characterized by rising Average Daily Rates and healthy occupancy levels across major urban hubs. Companies in this space are increasingly seeking capital to de-leverage balance sheets or fund renovations to meet the growing demand from domestic tourism and international business travel. Funding activities through rights issues have become more frequent as hotel operators look to capitalize on the sector's positive momentum.
Viceroy Hotels' move to raise capital aligns with these broader industry trends of financial strengthening in a post-pandemic growth environment.
| Share price | ₹128.42 |
|---|---|
| Market capitalisation | ₹867.85 Cr |
| Revenue (annual) | ₹143.20 Cr |
| Net profit (annual) | ₹18.32 Cr |
| Revenue (latest quarter) | ₹48.37 Cr+25.10% vs previous quarter |
| Net profit (latest quarter) | ₹6.00 Cr-45.26% vs previous quarter |
| P/E (TTM) | 47.38×Sector 43.88× |
| Promoter holding | 84.11%0.00% QoQ |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Viceroy Hotels Ltd announcing the board's approval for fund raising through a rights issue up to ₹107 crore. Market figures from a third-party data provider.
