Panoramic Universal to raise US$ 15 mn through GDR issue

Mumbai, Nov 14 (UNI) Panoramic Universal Ltd, the flagship company of the Panoramic group, has filed the Draft Offering Circular with the Bombay Stock Exchange pursuant to the requirement under the listing agreement for obtaining their in-principle approval to list the Ordinary Shares issued under the Global Depositary Route (GDR) of the value of USD 15 million, inclusive of a Green Shoe Option of USD 3 million.

These GDR's are proposed to be listed on the Luxembourg Stock Exchange, the company said adding that it has appointed Elara Capital Plc as their lead managers and Fox Mandal&Co. as their legal advisors to the issue.

The capital raised through the GRD route will be used to fuel the company's ambitious growth plans in India. It shall invest these funds for acquisition of two hotels, construction of one three star hotel in Thane and a Travel Agency.

Panoramic Universal has identified and will acquire two hotels in USA by March 2007. In India, the company has plans to build two five star hotels in Pune and Goa. While land has been acquired for the Pune project, the negotiations are going on for the land in Goa.

Other plans for India also include a hotel each in Kerala, Rajasthan and Shimla. The group has also lined up two projects in Thane and Durgapur. These projects shall be three star hotels with a recreation club. Thane project is already underway and is expected to be operational in 16 months, while Durgapur project is expected to be operational in another 24 months.

A budget hotel of 150 rooms is planned in Pune and is expected to be operational by 2008-09. The total investment planned for the group's foray in the hospitality sector is pegged at Rs 1000 crore spread over the next three years.

Currently, Panoramic Universal owns and operates five hotels in USA, one in New Zealand and three hotels in India -- one at Goa, while the other two at Shirdi and Malvan in Maharashtra.

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