Indian Hotels revises rights issue plan

Written by Corporate Bureau | Mumbai, Sep 27 | Updated: Sep 28 2007, 05:41am hrs
Indian Hotels Company Ltd (IHCL) informed Bombay Stock Exchange (BSE) on Thursday that it has modified one of the two instruments of its proposed rights issue announced on August 13.

The board of directors approved the draft of the offer document to be filed with Sebi at a meeting held here.

As per the modified rights issue proposal, IHCL will make two concurrent but unlinked rights issue: there will be no change in the rights issue of equity shares to be offered to the shareholders in the ratio of 1:5 at Rs 70 per share (of the face value of Re 1 each); this issue will increase the equity capital by Rs 12.06 crore (over the present capital of Rs 60.29 crore) and will raise Rs 844 crore.

Also, instead of a proposed issue of 4% fully convertible debentures announced last month, the company will now come out with a rights issue of 6% non-convertible debenture (NCD) in the ratio of 1 NCD for every 10 shares held.

Each NCD will have a detachable warrant giving the holders a right to purchase one share of the company for Rs 130-150 and this right would be exercisable not later than 12 months from the date of allotment.

The NCDs, which mature after three years, would raise an amount of Rs 600 crore and a further Rs 780-900 crore would be raised if the warrants are exercised, the company said.