Indian Hotels stock gains 3% as Rs 2,000-crore QIP opens

Stock of Indian Hotels gained 3 per cent after the Tata Group-backed firm launched a qualified institutional placement (QIP) of shares today to raise close to Rs 2,000 crore from qualified institutional buyers.

Indian Hotels stock rose 2.99 per cent to Rs 215 against the previous close of Rs 208.75 on BSE today. The shares have gained 13.63 per cent in the last four days. Indian Hotels stock zoomed 86.95 per cent in one year and risen 16.96 per cent since the beginning of this year.

A total of 1.20 lakh shares of the firm changed hands, amounting to a turnover of Rs 2.55 crore. Market cap of the firm rose to Rs 27,848 crore on the BSE.

The stock hit a 52-week low of Rs 90.89 on April 22, 2021 and a 52-week high of Rs 230.14 on October 14,2021. According to reports, Tata Sons, the parent firm of Indian Hotels Company (IHCL), is looking to cut its stake by up to 8 per cent in the hotel major through the QIP route.

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Tata Sons held a 41.05 per cent stake in IHCL, the operator of the Taj group of hotels at the end of quarter ended December 2021. Proceeds from the QIP will be used to reduce Indian Hotels' consolidated debt worth Rs 1,905 crore (as of December last year).  It stood at Rs 3,100 crore at the start of year 2021.

The floor price fixed for the QIP is Rs 203.48, while the issue price could be in the range of Rs 200 to Rs 204.

The company will allot close to 10 crore shares, which will lead to a dilution of 7.5 per cent stake.

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The firm reported a 163 per cent rise in consolidated net profit to Rs 76.01 crore in Q3 against a net loss of Rs 120.58 crore in the year-ago period. Consolidated net profit climbed 2.27 per cent from Rs 74.32 crore in the second quarter ended September 2021 (Q2FY22).

Sales climbed 52.56 per cent to Rs 1111.22 crore in the December quarter as compared to Rs 728.37 crore in the corresponding quarter of last fiscal.