Indian Hotels gets nod to raise $150m, float pref issue

The shareholders of Indian Hotels Company approved the hospitality chain's proposal to raise long term funding of up to $150 million and issuance of cumulative redeemable preference shares of Rs 100 each for a total amount not exceeding Rs 100 crore through private placement or other means.

The shareholders also gave their consent to increase directors' borrowing powers to up to Rs 2,000 crore at the company's extraordinary general meeting here today.

As part of its strategy to become a global hospitality player, the funds would be utilised to acquire properties both in India and abroad.

R K Krishna Kumar, vice chairman of IHCL said, "The company would use the funds to partly finance acquisition plans both in India and abroad, to become an international hotel chain major with a "strong position" in the country."

The firm would raise the money through various instruments including FCCBs, public issues or private placement among others, he added.