Indian Hotels is trading nearly 5% higher at Rs 62.50 in opening trades on the National Stock Exchange, extending its Friday’s 6% rally after the directors approved the allotment of 48 million ordinary equity shares of Re 1 each of the company at a premium of Rs 102.64 per share aggregating to Rs 497.47 crore to its promoter Tata Sons.
“Tata Sons has exercised the option to convert 48 million warrants into equivalent number of Indian Hotel’s shares at Rs 103.64 per share, of which 25% amounting to Rs 124.37 crore had been received on allotment of warrants,” the company said in a filing to the BSE
Tata Sons' total holding in Indian Hotels Company, which runs the Taj chain of luxury hotels, has increased to 24.36% from 19.58% on enhanced capital. The money will help the company implement its growth plans by providing crucial equity.
A combined 305,000 shares have changed hands on the counter in opening deals on both the exchanges.