Tata held Indian Hotels to raise Rs 1,900 Cr

By SiliconIndia   |   Tuesday, 14 August 2007, 07:00 Hrs
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Mumbai: Indian Hotels Company, the Tata group firm that operates the Taj chain of hotels, will collect around Rs 1,700-1,900 crore through two rights issues to meet its long-term requirement for capital for expansion, including acquisitions.

The company will raise Rs 844 crore through a rights offer for equity shareholders, while it will mop up Rs 900-1,080 crore through a similar offer for unsecured convertible debenture-holders. The exact size of the fund collection through the rights offer of debentures will be determined at the time of the issue.

The company will offer one rights share to shareholders for every five shares they hold. The offer will be priced at Rs 70 apiece. Debenture holders will get one debenture for every 10 they hold. The debentures will carry a coupon rate of four percent for five years. The debentures can be converted after two years at a price of 150-180 apiece.

Share prices of Indian Hotels today jumped 2.98 percent and closed at Rs 139.95 in Mumbai market.

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