Indian Hotel Company Limited (IHCL), a Tata group company, on Thursday said it has revised the schedule for its rights issue.
In a release to the Bombay Stock Exchange (BSE), the company said that it has extended the closing date for the issue by nine days and has pushed the exercise of warrants to next year. It will now open on September 1, 2009 and close on September 30, 2009 instead of opening on September 1, 2008 and closing on September 30, 2008, citing the volatility in the markets.
The rights issue of 120.6 million shares to raise Rs 844 crore was scheduled to close on April 15 but will now close on April 24, the company said in a release.
In January, IHCL had announced a rights issue of one share for every five held in the company and one non-convertible debenture (NCD) with detachable warrant for every 10 share held as on February 28.
The shares would be priced at Rs 70 each for the rights issue, while the NCDs of Rs 100 each would have a warrant exercise price of Rs 150 each.
The NCDs would be redeemable at the end of three years from the date of allotment, while the warrant exercise period would be not less than 12 months from the said date.
The shares of Indian Hotels closed at Rs 110.45 on Thursday, down by 1.07% on the BSE.
JM Financial Consultants is the lead manager for the issue.
