Tata Group promoted Indian Hotels Company Limited (IHCL) will raise up to Rs 1,000 crore through rights issue to fuel its expansion plans.
The hospitality major will raise the amount from its existing shareholders by issuing compulsory convertible debentures, the informed the BSE after the board meeting today. However, the rights issue is subjected to further shareholder and regulatory approvals.
“The Board of Directors of the company at its meeting held on March 27, has inter alia, considered and approved subject to the approval of the shareholders to the extent applicable, and receipt of the relevant approvals from the regulatory authorities, as may be required, issue of compulsory convertible debentures by way of rights issue to the existing shareholders of the company on a record date for an amount not exceeding Rs 1,000 crore,” the company said.
The terms and conditions of the rights issue including the rights entitlement ratio, the issue price, record date, timing and other related matters shall be decided subsequently by a duly constituted committee of the board.
Meanwhile, the board has also approved reclassification of authorised share capital of the company aggregating to Rs 200 crore by dividing into 100 crore equity shares of Re 1 each and 1 crore cumulative redeemable preferences shares of Rs 100 each into 200 crore equity shares of Re 1 each aggregating to Rs 200 crore.