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Indian Hotels plans rights issue

BS Reporter  |  Mumbai 

Indian Hotels Company Ltd (IHCL), the Tata group outfit that operates the Taj chain of hotels, is planning a rights issue to finance its expansion in India and abroad.
The IHCL board will meet on August 13 to consider various options for raising long-term finance for its capital expenditure and growth plans, the company informed the stock exchanges today.
The details of the rights issue, including the pricing, are expected to be decided at the board meeting. The issue is a part of the company's plan to raise Rs 1,200 crore in three years, IHCL Chairman Ratan Tata said at the company's 106th annual general meeting.
The rights issue, once decided upon by the board and ratified by the shareholders, will be the second offer by the company, the first one being a 1:3 issue in 1993. The company launched two bonus issues""1:2 in 1989 and 1:1 in 1994.
Several Tata group "" Tata Steel, Trent, Tata Teleservices and Tata Coffee "" have announced rights offers in the past year.
The shareholders today passed a resolution to bring down foreign institutional investors (FIIs) investment from 40 per cent to 30 per cent. FIIs currently hold 23.4 per cent and the promoters, 29 per cent. The equity capital of the company stands at Rs 60.29 crore.
Share prices of IHCL today closed flat at Rs 135.70 on the BSE.

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First Published: Sat, August 04 2007. 00:00 IST