Indian Hotels down 9% in two days after board approves rights issue

The stock was donw 6% at Rs 112.50, extending its Monday's 3% fall on BSE.

Indian Hotels Company was trading 6% lower at Rs 112.50, extending its Monday’s 3% fall on BSE, after the company said its board approved the fund raising of upto Rs 1,500 crore through rights issue.

Tata Group hospitality firm said the objective of the rights issue is to meet the long-term financing needs for capital expenditure, growth plans and debt repayment.

Indian Hotels has consolidated gross debt of Rs 3,383 crore. After taking into account liquidity of Rs 161 crore, the net debt was Rs 3,221 crore as at June 30, 2017 (Q1FY18).

The company had posted