Kamat Hotels enters into MoU for sale of VITS, Mumbai unit for up to ₹125 crore

 

• With a market valuation of ₹255.42 crore, Kamat Hotels is a small-cap firm that operates in the country's consumer discretionary industry.

With a market valuation of ₹255.42 Crore, Kamat Hotels is a small-cap firm operating in the consumer discretionary industry of the country. Kamat Hotels India Limited, one of the businesses of the Kamat Group, was established in 1986 and has over 80 years of expertise in hospitality, hotels and restaurants. The company's portfolio of businesses includes timeshares, clubs, resorts, heritage hotels and many other hospitality-related projects across India. The company today said it has signed an agreement to sell its Mumbai-based VITS unit for up to ₹125 crore.

The company today said in a stock exchange filing that "the Board of Directors has approved the transaction that was negotiated with the prospective buyers for entering into the Memorandum of Understanding in respect of the sale of the unit at VITS, Mumbai, Company , which shall not be less than Rs. 125 crores on such terms and conditions, including such value as may be considered in the interest of the company, subject to the final approval of the members of the company."

The total income of the company amounts to ₹145.63 Crore (consolidated), the turnover of VITS unit amounts to ₹35.60 Crore and the percentage contribution to the turnover of the listed company in FY 2021-22 is 24.45% and such unit during the previous financial year or the percentage of turnover or revenue or income and net worth contributed by the division of the listed entity. The board of directors in a stock exchange filing said the date of completion of the sale/disposal would be subject to obtaining relevant approvals from the consortium of lenders and fulfillment of any conditions.

Shares of Kamat Hotels today closed at ₹107.45, up 3.57% from its previous close of ₹103.75. The stock recorded a total volume of 235,642 shares as compared to 20-day average volume of 156,521 shares. The stock has given multibagger return of 120.64% in last one year, and has gained 83.99% during last six months. The stock has appreciated 6.07% in last month and 13.58% in last five trading sessions.