Indian Hotels to raise Rs 1,000 cr through rights issue

Company board also approved reclassification of authorised share capital

Tata group firm Indian Hotels plans to raise up to Rs 1,000 crore through rights issue from its existing shareholders.

In a filing to the BSE, Indian Hotels said the company in its board meeting held today approved the scheme to raise up to Rs 1,000 crore by issuing compulsory convertible debentures.

"The Board of Directors of the company at its meeting held on March 27 considered and approved subject to the approval of the shareholders to the extent applicable, and receipt of the relevant approvals from the regulatory authorities, as may be required, issue of compulsory convertible debentures by way of rights issue to the existing shareholders of the company on a record date for an amount not exceeding Rs 1,000 crore," the company said.

The Rs 1,000-crore rights issue would be subject to further approval from its shareholders and regulatory authorities, it added.

Moreover, a committee would be constituted by the board of the company to look into the issues related to terms and conditions, entitlement, price, date and timing and other related matters.

The board also approved reclassification of authorised share capital of the company aggregating to Rs 200 crore by dividing into 100 crore equity shares of Re 1 each and 1 crore cumulative redeemable preferences shares of Rs 100 each into 200 crore equity shares of Rs 1 each aggregating to Rs 200 crore.