Indian Hotels to raise Rs 3,000 cr via rights issue for capex, pruning debt

Tata Group's hospitality arm has been using rights issues for fund raising regularly. It raised Rs 1,500 cr in April 2017, Rs 1,000 cr in January 2016 and Rs 844 crore in Feb 2008

Indian Hotels Co Ltd (IHCL) will raise up to Rs 3,000 crore through a rights issue, the company said in a notification to the exchanges on Monday. The issue is subject to receipt of relevant approvals from regulatory authorities. The proceeds of the issue will be utilised for capital expenditure, growth plans and debt repayment and will be finalised in consultation with the merchant bankers, it said.

The hospitality arm of the Tata Group has been using rights issues as a fund raising instrument with a regular frequency. The company raised Rs 1,500 crore in April 2017, Rs 1,000 crore