Indian Hotel Company
Tata backed Indian Hotels Company to launch Rs 2000 cr QIP
Indian Hotels Company (IHCL) is set to launch a qualified institutional placement (QIP) worth Rs 2,000 crore, Economic Times reported.
The QIP is aimed at boosting its business expansion in the post-COVID-19 pandemic era, the report said.
Sources to ET that ICICI Securities and Credit Suisse have been given the task to help the Tata Group backed hotel chain raise funds from a host of local and global institutional investors.
Each investor will get shares of the company, the report said.
On March 22, the company informed the bourses, that its Board of Directors’ QIP Committee in a meeting approved opening the issue on March 22; approved and adopted the preliminary placement document and application form (both dated March 22); and approved floor price for the issue at around Rs 203.48 per equity share. Face value is Re 1 per share.
“We wish to inform you that pursuant to the approval accorded by the Board of Directors of the company at its meeting held on October 21, 2021 and the special resolution passed by way of postal ballot/e-voting on January 29, 2022 by the Members of the Company, the QIP Committee 2021-22 of the Board has, at its meeting held today i.e. March 22, 2022, inter alia, passed resolutions for the following: (a) Authorised the opening of the Issue today, i.e. March 22, 2022; (b) Approved and adopted the preliminary placement document dated March 22, 2022 and the application form dated March 22, 2022 in connection with the Issue; and (c) Approved the floor price for the Issue, based on the pricing formula as prescribed under the SEBI ICDR Regulations,” the statement read.
It said that “relevant date for purpose of the issue” is March 22. “The floor price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is 203.48 per equity share.”
IHCL MD and CEO Puneet Chhatwal had said the money would help the chain to be a zero debt company in the future and will enable fund the company's expansion as well as its capital expenditure plans.
It has has a portfolio of 232 hotels, including 58 under development globally across four continents, 11 countries and over 100 locations.
Chatwal told CNBCTV18 on March 22, the hospitality industry is coming out of the COVID blue at a healthy pace with daily business on the books is on the higher side in In March, April and May.
“Our domestic contribution of tourism is very strong, that makes the sector a bit more resilient than we all would have thought. Pre-pandemic I don't think many really respected the contribution of domestic business and leisure as much as we do today,” he was quoted as saying by the news channel.
Chatwal stressed that the long-term outlook of the industry is going to be far more positive than what it was five years ago despite the Covid-19 effect and the ongoing Russia-Ukraine war.
"What we are experiencing in the last four to six weeks is such a strong revival. The long-term outlook of the hospitality industry is going to be far more positive than it ever was 5 to 10 years ago,” he told news agency PTI.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
