Nithin Kamath and Nikhil Kamath, founders of Zerodha, acquired a 6.72% stake in Viceroy Hotels during the September quarter, according to shareholding disclosures reported by thehindubusinessline.com. The investment was made through two separate vehicles, Kamath Associates and Nksquared, marking a notable development as Viceroy Hotels seeks to build on its operational recovery after management changes in 2023.
Viceroy Hotels had faced financial distress and entered the Corporate Insolvency Resolution Process due to leveraged expansion and creditor dues exceeding ₹1,150 crore. The company’s shares were suspended amid liquidation threats. A resolution plan by Anirudh Agro Farms Limited was approved by the National Company Law Appellate Tribunal in October 2023, leading to fresh capital infusion via Loko Hospitality. Following this, Viceroy’s shares resumed trading on NSE and BSE in April 2024.
The Kamath brothers’ investment is significant given Viceroy Hotels’ turnaround efforts. The company operates Marriott and Courtyard by Marriott properties in Hyderabad and recently launched a rights issue to raise around ₹105 crore at ₹115 per share. This fund-raising aims to comply with regulatory requirements by adjusting the public shareholding after a period of high promoter holding.
Viceroy Hotels’ rights issue is ongoing, targeting ₹105 crore, with the objective of aligning public shareholding with regulatory norms. The Kamath brothers’ stake acquisition coincides with this capital-raising phase, underscoring renewed investor interest in the company’s recovery trajectory.