Indian hotels gain 3% as Board of Directors approved QIP program of Rs 2,000 crore

Shares of the Indian hotel company rose 3 per cent to 215 rupees on the Bahrain Bourse on Wednesday after Tata Group announced that the Qualified Institutional Placement Committee (QIP) had approved a QIP issue on March 22, 2022. The company proposed mobilizing around Rs 2,000 crore from During QIP and has a fixed minimum price of Rs 203.48 per share.

At 09:33 am, Indian hotel trading was up 1 percent at Rs 210.60, compared to 0.34 percent in the S&P BSE Sensex. The stock reached a 52-week high of Rs 230.14 on October 14, 2021.

The Company’s Board of Directors will now meet on March 25, 2022 to consider and approve the issue price, including a discount for allocating shares to eligible institutional buyers.

Indian hotels intend to use the net proceeds to finance repayment (in whole or in part) or debt repayment; Working capital requirements and investment in subsidiaries, joint ventures, associates and subsidiaries; Financing business opportunities (which may be organic or inorganic) and capital expenditures, including the development, renewal, and renewal of the company’s assets.

In November 2021, Indian Hotels through rights raised Rs 1,982 crore by issuing 132 million shares at Rs 150 per share. “The company has publicized the equity recently raised through the rights issue to draw down debt in accordance with the objectives of the issue, thereby furthering the Indian Hotel’s goal of being a debt-free company in the long term,” the management said.

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