Tata Group hospitality arm Indian Hotels Company on Monday said its board has approved raising of up to Rs 3,000 crore through a rights issue.
The board of directors of the company has considered and approved, issue of equity shares by way of a rights issue to the existing shareholders of the company on a record date for an amount not exceeding Rs 3,000 crore, Indian Hotels Company Ltd (IHCL) said in a regulatory filing.
The objective of the issue is to meet the company's financing needs for capital expenditure, growth plans and debt repayment . It will be finalised in consultation with the merchant bankers, it added.
The board also approved the formation of a committee of directors for the rights issue, to decide on its terms and conditions including the rights entitlement ratio, the issue price, record date, timing of the rights issue and other related matters, the filing said.
The board also approved the appointment of Anupam Narayan as an additional director of the company in an independent capacity for five years commencing from August 23, 2021 up to August 22, 2026, it added.
Shares of Indian Hotels Company Ltd closed at Rs 137.85 per scrip on the BSE, down 0.51 per cent from the previous close.
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