2 days ago
Zerodha Founders Take 6.72% Stake in Recovering Viceroy Hotels
Nithin and Nikhil Kamath, who founded Zerodha, bought a small part of Viceroy Hotels.
The investment was made through two companies and totals 6.72% of Viceroy.
Viceroy had faced serious debt problems and entered an insolvency process.
A tribunal approved a plan to resolve the crisis in October 2023.
The company later brought in fresh funds and its shares began trading again in April 2024.
Viceroy now operates three Marriott-branded hotels in Hyderabad.
It plans to add another hotel there and has a long-term goal of reaching 10,000 rooms across India.
Its FY26 report said revenue and operating earnings increased, although net profit was lower than the previous year because that year included a deferred tax gain.
Nithin Kamath and Nikhil Kamath acquired a 6.72% stake in Viceroy Hotels during the September quarter through Kamath Associates and Nksquared.
Promoters held 74% of the company, while general shareholders held 25.6%, according to the latest shareholding data.
Viceroy entered insolvency after accumulating more than ₹1,150 crore in creditor dues, before a resolution plan was approved in October 2023.
Trading in its shares resumed on the NSE and BSE in April 2024 after implementation of the resolution plan.
The company reported FY26 revenue of ₹149 crore and EBITDA of ₹44.6 crore, and plans to expand its hotel portfolio.
- Who
- Zerodha founders Nithin Kamath and Nikhil Kamath, investing through Kamath Associates and Nksquared.
- What
- They acquired a 6.72% stake in Viceroy Hotels.
- Where
- Viceroy Hotels operates three Marriott-branded properties in Hyderabad, India.
- When
- During the September quarter; the article does not specify the year.
- Why
- The article presents the investment as a sign of confidence in Viceroy Hotels’ prospects following its management change and recovery from insolvency.
Key facts
- Stake acquired
- 6.72%
- Investment entities
- Kamath Associates and Nksquared
- Promoter ownership
- 74%
- Creditor dues before resolution
- More than ₹1,150 crore
- Resolution plan approved
- October 2023
- Share trading resumed
- April 2024, on the NSE and BSE
- FY26 revenue and EBITDA
- ₹149 crore revenue and ₹44.6 crore EBITDA
- Long-term room target
- 10,000 rooms across India
Quotes
Kondareddy Ravinder Reddy
Managing Director and CEO of Viceroy Hotels
“We remain focused on our strategic priorities of expanding our presence across Hyderabad and other key markets in India through a balanced mix of greenfield and brownfield developments, along with selective value-accretive acquisitions”
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