Tata Group hospitality firm Indian Hotels has received shareholders’ nod for lending Rs 700 crore to its subsidiary Lands End Properties Pvt Ltd.
The resolutions “set forth in the postal ballot notice are approved by members of the company with requisite majority,” India Hotels Company said in a regulatory filing.
The company had sought shareholders’ nod through a postal ballot seeking approval to give loans in the form of inter- corporate deposits/secured or unsecured loans for a principal amount not exceeding Rs 700 crore to Lands End Properties Pvt Ltd (LEPPL).
LEPPL is a wholly-owned subsidiary of the company, and proceeds of such loans shall be utilised by LEPPL for refinancing or redeeming its existing financial indebtedness including inter alia term loans, working capital facilities, any other credit facilities and/or non-convertible debentures issued by LEPPL.
The company’s stakeholders also gave assent to proposal to provide “guarantee or letter of comfort for the obligations of Skydeck Properties and Developers Pvt Ltd”, presently a one level step-down wholly owned subsidiary of the company.
Stakeholders also gave their approval to create security over the shares of ELEL Hotels and Investments Ltd, an indirect subsidiary of the company for securing the obligations of Skydeck Properties and Developers Private Ltd.
Shares of Indian Hotels closed at Rs 108 on BSE, down 4.76 per cent from previous close.