Indian Hotels To Raise Up To Rs 1,500 Crore Through Rights Issue
Indian Hotels to raise Rs 1,500 crore through rights issue for growth and debt repayment.
The Indian Hotels Company Ltd. that runs the Taj chain of hotels plans to raise up to Rs 1,500 crore through a rights issue.
Funds are being raised to “meet the company's long-term financing needs for capital expenditure, growth plans and debt repayment,” the Tata Group hospitality arm said a filing to the Bombay Stock Exchange.
The board of directors of the company at its meeting on Monday has considered and approved issue of equity shares by way of a rights issue to the existing shareholders of the company on a record date for an amount not exceeding Rs 1,500 crore, the filing said.
This is subject to the relevant regulatory approvals, the company said.
The board also approved the formation of a committee of directors for the rights issue to decide on the terms and conditions, including the rights entitlement ratio, issue price, record date, timing of the issue and related matters, it added.
Shares of Indian Hotels Company ended on Monday at Rs 119.65 per scrip, down 3.47 per cent from its previous close.