Indian Hotels Co plans to raise Rs 700 cr via NCDs

Tata group firm Indian Hotels Company (IHC) plans to raise Rs 700 crore through issue of non-convertible debenture (NCDs) on private placement basis to fund renovation of its hotels, debt repayment and other operational expenses.
The company, which runs Taj group of hotels and resorts, is seeking approval of its shareholders at the upcoming AGM, to would issue NCDs in more than one tranches within one year from the passing of the resolution, the Indian Hotels Company informed BSE.
IHC's Annual General Meeting will be held on August 23, 2016.
"The company also proposes to selectively renovate hotels during the current year. Thus, taking into account the internal accruals, debt repayment, expenditure on renovations and other operational expenses for FY 2016-17, the company may be required to raise Rs 700 crore during the coming year," said IHC.

Besides, IHC is also seeking nod for reappointments of Anil P Goel and S Kapadia as wholetime directors who are currently its Executive Director & CFO and Executive Director - Corporate Affairs.
At present, IHC has an approved borrowing limit of Rs 5,000 crore and as on March 31, 2016, the total debt of the company was Rs 2,611 crore. This includes NCDs of Rs 1,796 crore, it said.