Anilana major shareholder S’pore-based Somap absorbs entirety of Rs. 183 m Rights

Thursday, 10 December 2020 02:12 - - {{hitsCtrl.values.hits}}

Somap International Founder and Anilana Hotels and Properties Chairman Dinesh Pandey

The Singapore-based Somap International Ltd., the major shareholder of Anilana Hotels and Properties PLC, has absorbed the entirety of its Rs. 183 million Rights Issue.

The Issue on the basis of one new share for 13 held resulted in million shares at Rs. 2 each and had been fully subscribed.

Prior to the Rights Issue, Somap, which holds a 70.4% stake, indicated to the Board its commitment to take up its Rights entitlement in full and to subscribe further for any unsubscribed shares in order to facilitate the Rights Issue to be fully subscribed.

Funds raised via Rights are to be used to meet operational requirements of the company and those in the Group, namely Eastern Development Enterprises Ltd. and Anilana Resorts Ltd. Specifically Rs. 136 million is to be used to repay the company’s loan capital and interest due, prior to application of the moratorium; Rs. 42 million as salaries of the stated Group companies; and Rs. 5 million as VAT.

Anilana said amidst the COVID-19 pandemic and other challenges the company performed reasonably well in the year 2019/2020. The company has been able to reduce the losses compared to the previous year. The industry too has rallied together to overcome the challenges.

Anilana, although heavily affected, has risen from the setback and consolidated its position. Taking advantage of the moratoriums offered by the banks and the assistance given by the parent company, it has been able to overcome this most difficult situation.

One of the key areas Anilana has looked at is to target local travellers, who are taking the advantage of generous discounts offered and promotional offers by hotels.

It has hired experienced sales staff and is in an aggressive marketing drive to lure local tourists. Anilana is hopeful that normalcy would return to the travel and tourism trade and that it can look forward to rewarding results in the near future.