The board of directors have taken note of the proposal received from J W Marriott, US, to take the property on management contract and approved the proposal to construct five star deluxe category hotel at Chennai with a project cost of Rs 460 crore (Rs 4.6 billion), Viceroy Hotel informed the Bombay Stock Exchange.
The board also authorised the managing director to explore the possibility to have franchisee agreement or management contract with Marriott International Inc, US, and approved the construction of a star category hotel at Bangalore with a project cost of Rs 160 crore (Rs 1.6 billion), it said.
The company will also issue 81,71,545 equity shares and 78,28,455 warrants of Rs 10 each at a premium of Rs 77.50 per share/warrant on private preferential basis.
The warrants are convertible into equity shares not later than 18 months from the date of allotment on private preferential basis, it added.