IHCL aims to trim debt by Rs 550 crore

Indian Hotels Company (IHCL) is targeting to cut high cost debt by Rs 550 crore by utilizing a part of the proceeds from its upcoming rights issue. IHCL is to issue compulsorily convertible debentures (CCDs) for Rs 1,000 crore on a rights basis. Part of the proceeds would be utilised towards capital expenditure proposed to be incurred by the company for construction of its Vivanta by Taj in Guwahati. The company is aiming to use Rs 70 crore towards the upcoming property. The estimated cost of construction and commissioning of the Vivanta Guwahati stands at Rs 166.80 crore, of which the company has already incurred capex of Rs 68.18 crore till March 31, 2014. The Indian Hotels Company and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and is recognized as one of Asia's largest and finest hotel company. IHCL operate in the luxury, premium, mid-market and value segments of the market. Ginger (economy hotels) is IHCL’s revolutionary concept in hospitality. It currently comprises 105 hotels across India and 17 international hotels in the Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka, Africa and the Middle East.