Indian Hotel rallies over 3%, hits 52-week high on fund raising plans

NEW DELHI: Indian Hotels Company Ltd rose as much as 3.6 per cent in trade on Wednesday after the Tata group firm said that it plans to raise Rs 1,000 crore by way of rights issue, today fixed the price at Rs 55 per compulsory convertible debenture (CCD).

At 09:40 a.m.; Indian Hotels was trading 3 per cent higher at Rs 108.90. It hit a low of Rs 106.70 and a 52-week high of Rs 109.55 in trade today on the Bombay Stock Exchange.

The CCDs are to be issued to the existing shareholders of the company for an 'amount not exceeding Rs 1,000 crore', it added.

"1 CCDs of the face value of Rs 55 each will be automatically and compulsorily converted into 1 equity share fully paid up of Re 1 each at a premium of Rs 54 after 18 months from the date of allotment of CCDs (the conversion date)...," it added.

Earlier the hospitality major had sought market regulator Sebi's approval to raise Rs 1,000 crore through issue of debentures on rights basis.

IHCL intends to utilise part of the proceeds from the issue towards capital expenditure proposed to be incurred by the company for construction of Vivanta by Taj in Guwahati, said PTI report.