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Hotel Leela Venture share price rises on fund-raising reports

The surge in the stock followed reports that the company was in talks for raising about Rs 1,000 crore through some stake sale to private equity firms and issue of FCCBs.

Share price of Hotel Leela Venture, which operates various luxury hotels under the Leela brand, on Monday rose over 3 per cent amid reports of the company's plans to raise funds and lower its debts.

The stock was trading 3.1 per cent higher at Rs 45.35 in early morning trade at the Bombay Stock Exchange (BSE).

The surge in the stock followed reports that the company was in talks for raising about Rs 1,000 crore through some stake sale to private equity firms and issue of foreign currency convertible bonds (FCCBs).

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Besides, the company is also reportedly looking at sale of some non-core assets.

The company's shares have seen various spurts in recent past on talks of fund-raising and debt-reduction plans. The stock has appreciated by over 30 per cent from its 52-week low of Rs 34.10 in February this year.

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Hotel Leela Venture is said to be burdened under huge debts and its stock is still trading way below its 52-week high of Rs 58.70, scaled on October 11, 2010.