Indian Hotels issues terms on CCDs

Indian Hotels Company, the country's biggest hotel chain, will issue nine compulsorily convertible debenture (CCD) for every 40 equity shares to raise up to Rs 1,000 crore.

The CCDs will be converted into equity shares after 18 months from the date of allotment. No interest shall be paid and no redemption will be allowed on the unsecured CCDs.

"The conversion price shall be adjusted for any bonus or rights issue made by IHCL prior to the conversion date so as to ensure that the benefit of the CCD holder in not prejudiced and remain the same as if the conversion of the CCD into the equity shares had been undertaken prior to such bonus or rights issue", a statement from IHCL said.