Tata Group hospitality arm Indian Hotels Company today said its board has approved raising 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", Indian Hotels Company Ltd (IHCL) said in a filing to the BSE.
The board of directors of the company at its meeting held today 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, it added.
This is subject to the relevant regulatory approvals, IHCL said.
The board also approved the formation of a committee of directors for the rights issue to decide on the terms and conditions of the rights issue including the rights entitlement ratio, issue price, record date, timing of the issue and other related matters, it added.
Shares of Indian Hotels Company today ended at Rs 119.65 per scrip, down 3.47 per cent from its previous close.
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