H S India Ltd (Hotel Silver Ltd):
BSE Code-->532145:
EPS--->Rs.2.79
P/E--->7.4
Market Cap-->Rs.21.6 Cr
Face Value--->Rs.10
H S India Ltd will buy a New Hotel, the renovation work is expected to take 8 months to 9 months to be completed. . Talks are on the final stages to acquire substantial stakes in Ideal Hotels & Industries Ltd Located at Varanasi and Kesar Motels Pvt Ltd located at Ankteshwar.
Earlier, the shareholders of the Company have authorised the Board of Directors to acquire substantial stake exceeding 51% in Ideal Hotels & Industries Ltd located at Varanasi for a consideration not exceeding Rs 35 Cr and Kesar Motels Pvt Ltd located at Ankleshwar for a consideration not exceeding Rs 15 Cr respectively.
Also, the shareholders had given their consent to the Board to make preferential allotment of 50,00,000 warrants convertible into 50,00,000 equity shares of Rs 10/- to promoters and other than promoters group. Accordingly, Board has constituted Allotment Committee and delegated power of the Board. The Company has made an application to get approval of the Bombay Stock Exchange Ltd for making preferential allotment of above mentioned convertible warrant.
The company is scouting through the length and breadth of the country to purchase land for the purpose of erecting 4-star hotels.
In terms of the Clause 92 of the Memorandum of Association approved by the Shareholders at their meeting held on May 30, 2000, during the quarter , the company has started a new segment of activity i.e. "SOFTWARE". Consequently, the operations of the Company have been segregated in to two Divisions i.e. Hotel Division and Software Division.
The company is seriously thinking of raising money upto Rs 225 Crores of which Rs 100 Crores through long-term debts, Rs50 Crores through OFCD and Rs 75 Crores through follow-up FPO/placement of equity withstrategic investors, for acquiring land and commercial properties at Mumbai, Jaipur and Lucknow for setting up 4 star hotel projects. & for the purpose of expansion, acquisition and retirement of existing high cost debt.
The company has started a new division for "Software" segment to make its business effective and revenue generating.
It is in expansion mode by means of adding facilities of Health Club, Coffee Shop and Executive Room, and to uplift & renovate hotel property.
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