Viceroy Hotels Ltd has informed that the Board of Directors of the Company at the meeting held on 21 November, 2005, have considered and approved construction of a five star deluxe category hotel at Chennai with a project cost of Rs 460 crore. The board also took note of the proposal received from J W Marriott, USA, to take the property on Management Contract. The Board authorised the Managing Director to discuss the terms and conditions and sign the agreement in connection therewith. The construction of a star category hotel at Bangalore with a project cost of approximately Rs 160 crore is also agreed upon. The board authorises the Managing Director to explore the possibility to have franchisee agreement/ management contract with Marriott International Inc, USA.

The Board has also decided to issue 81.71 lakh equity shares of Rs 10 each at a premium of Rs 77.50 per share on a private preferential basis and to issue 78.28 lakh warrants of Rs 10 each at a premium of Rs 77.50 per warrant to be convertible into equity shares not later than 18 months from the date of allotment on private preferential basis.