Shares of Indian Hotels Company were up 3 per cent to Rs 215 on the BSE in Wednesday's intra-day trade after the Tata Group company announced that its qualified institutional placement (QIP) committee has approved the QIP issue on March 22, 2022. The company has proposed to mobilize around Rs 2,000 crore through QIP and has fixed floor price at Rs 203.48 per share.
At 09:33 am, Indian Hotels traded 1 per cent higher at Rs 210.60, as compared to 0.34 per cent gain in the S&P BSE Sensex. The stock had hit a 52-week high of Rs 230.14 on October 14, 2021.
The board of directors of the company will now meet on March 25, 2022 to consider and approve the issue price, including a discount to allot equity shares to qualified institutional buyers.
Indian Hotels intends to use the net proceeds to finance (in whole or part) repayment or prepayment of debt; working capital requirements, investment in subsidiaries, joint ventures, associates and affiliates; financing of business opportunities (which may be either organic or inorganic) and capital expenditure, including towards development, refurbishment and renovation of the company's assets.
In November 2021, Indian Hotels had raised Rs 1,982 crore through rights by issuing 132 million equity shares at a price of Rs 150 per share. "The company deployed the recent equity raised through the rights issue to retire debt as per the objects of the issue, thereby strengthening Indian Hotel's objective of being a zero-debt company in the long term," said the management.
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