Hotel Leela Venture declines 1% on reports of Sebi’s order

ITC had challenged the Leela Venture-Brookfield transaction on Tuesday complaining of oppression and mismanagement.

Apr 25, 2019 12:04 IST India Infoline News Service

Hotel Leela Venture
Shares of Hotel Leela Venture dropped 1% in intraday trade on Thursday after media reports stated that the Securities and Exchange Board of India (Sebi) has asked the company and Brookfield to put assets deal on hold.

As per media reports, the market regulator took this decision after the National Companies Law Tribunal in Mumbai declined to admit rival ITC’s petition opposing the deal.

Reports further stated that, ITC did not get any relief with the NCLT refusing the tobacco-to-hotels conglomerate’s plea citing its apparent ineligibility under Section 244 of the Companies Act, which requires that only a person or entity owning at least 10% of the issued share capital can move a petition of this nature.

ITC had challenged the Leela Venture-Brookefield transaction on Tuesday complaining of oppression and mismanagement. All parties including JM Financial have been given time to reply and the next hearing will be held on June 18.

Hotel Leela Venture Ltd's share price is currently at Rs10.82, down by Rs0.15 or 1.37%, from its previous close of Rs10.97 on the BSE.
The scrip opened at Rs11 and has touched a high and low of Rs11 and Rs10.66, respectively. So far, 2,71,674 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs691.72cr.

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