Rights issue terms get all clear from IHCL committee
ET Bureau|
Updated: Sep 23, 2017, 01.38 PM IST
NEW DELHI: Indian Hotels Company Limited's (IHCL) rights issue committee has approved the terms of the rights issue in a meeting held on Friday. In a notification sent to the Bombay Stock Exchange IHCL stated it will issue up to 20 crore equity shares for cash price of Rs 75 per equity share (including a premium of Rs 74 per equity share).
The issue opening date will be October 13 and the closing date will be October 27.
ET was the first to report that the company was planning to come up with a rights issue in its edition dated August 21.
IHCL stated the committee approved the issue price as Rs 75 per equity share (at a premium of Rs 74 per equity share) and the rights entitlement ratio as one equity share for every five fully paid up equity shares. IHCL said the objective of the rights issue is to meet its long term financing needs for capital expenditure, growth plans and debt repayment.
Sources had told ET that IHCL is coming out with a rights issue to primarily fund the expansion of the Taj Lands End and Sea Rock properties in Mumbai.
According to people familiar with the development, IHCL plans to add around 400-500 keys to these two properties. IHCL's stock closed at Rs 112.15 on the Bombay Stock Exchange on Friday.
The issue opening date will be October 13 and the closing date will be October 27.
ET was the first to report that the company was planning to come up with a rights issue in its edition dated August 21.
IHCL stated the committee approved the issue price as Rs 75 per equity share (at a premium of Rs 74 per equity share) and the rights entitlement ratio as one equity share for every five fully paid up equity shares. IHCL said the objective of the rights issue is to meet its long term financing needs for capital expenditure, growth plans and debt repayment.
Sources had told ET that IHCL is coming out with a rights issue to primarily fund the expansion of the Taj Lands End and Sea Rock properties in Mumbai.
According to people familiar with the development, IHCL plans to add around 400-500 keys to these two properties. IHCL's stock closed at Rs 112.15 on the Bombay Stock Exchange on Friday.
