Indian hotels gain 3% as board approves Rs 2,000 crore QIP
Shares of Indian Hotels Company rose 3% to Rs 215 on BSE during Wednesday’s intraday trading after the Tata Group company announced that its Qualified Institutional Investment Committee (QIP) had approved the issuance of the QIP on March 22, 2022. The company has offered to raise around Rs 2,000 crore through QIP and has set a floor price at Rs 203.48 per share.
As of 9:33 a.m., Indian hotels were trading up 1% at Rs 210.60, against a 0.34% gain in the S&P BSE Sensex. The stock had reached a 52-week high at Rs 230.14 on October 14, 2021.
The company’s board of directors will now meet on March 25, 2022 to review and approve the issue price, including a discount to allocate shares to qualified institutional buyers.
Indian Hotels intends to use the net proceeds to fund (in whole or in part) the repayment or prepayment of debt; working capital requirements, investments in subsidiaries, joint ventures, associates and affiliates; financing business opportunities (which can be organic or inorganic) and capital expenditures, including for the development, renovation and refurbishment of business assets.
By November 2021, Indian Hotels had raised Rs 1,982 crore through rights by issuing 132 million shares at a price of Rs 150 per share. “The company has deployed the capital recently raised through the rights issue to repay debt in accordance with the objects of the issuance, furthering Indian Hotel’s goal of being a long-term debt-free company,” said management said.