New Delhi, June 19: Hotel Leelaventure is planning to go in for a stock split, the company has informed the Bombay Stock Exchange.

The company’s board of directors is scheduled to meet on June 25, where it will consider a proposal for sub-division of equity shares.

The hotel will also consider a proposal to raise the limit on the shareholding of foreign institutional investors and declare a final dividend, if any, the release said.

At present, the company’s promoters hold 48.45 per cent equity, while the FIIs have 10.95 per cent.

More and more companies have been going in for stock splits, which raise the number of shares and correspondingly lower the price, making it more affordable for investors.

A stock split ensures that more investors are able to buy into a stock.

Earlier this year, Sterlite Industries, part of the London-based Vedanta group, decided to split their equity shares of Rs 5 face value into 2.5 shares of Rs 2 face value each.

Also, leading real estate major Unitech Limited received shareholders’ approval for stock split in the ratio of 1:5 last week.

Hotel Leela, which has been on a consistent expansion drive, posted a net profit of Rs 100.81crore in the year ended March 31, 2006, growing by 119 per cent.

Hotel Leela aims to invest approximately Rs 1,200 crore to expand to more locations in the country.

The company plans to raise close to Rs 220 crore through private equity, and about Rs 320 crore through foreign currency convertible bonds.

The rest will be raised through long term loans.