BackIndian Hotels to raise Rs1,000 crore via debentures to cut debt
The firm will utilize the proceeds to part-fund the capex proposed to be incurred for construction of Vivanta by Taj in Guwahati
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Mumbai: Indian Hotels Co. Ltd (IHCL) is planning to raise Rs1,000 crore by selling debentures to fund capital expenditure programmes and to cut debt.
IHCL, which runs the Taj brand of hotels and resorts, said it will sell compulsory convertible debentures to its promoter Tata Sons Ltd, according to a document filed by the company with the capital markets regulator. The price of the securities will be fixed at a later stage.
IHCL said it intends to utilize the proceeds to part-fund the capital expenditure proposed to be incurred for construction of a hotel property—Vivanta by Taj—in Guwahati, repayment of certain borrowings, funding of capital expenditure on existing hotels and other general corporate purposes.
JM Financial Institutional Securities Ltd, DSP Merrill Lynch Ltd, SBI Capital Markets Ltd and Standard Chartered Securities (India) Ltd are the lead managers to the issue.
Shares of IHCL lost 1.2% to Rs73.90 on Wednesday on BSE, while the exchange’s benchmark Sensex gained 0.52% to 22,876.54 points.
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