IHCL moves up on aim of trimming debt by Rs 550 crore

The Indian Hotels Company (IHCL) is currently trading at Rs. 74.00, up by 0.10 points or 0.14% from its previous closing of Rs. 73.90 on the BSE. The scrip opened at Rs. 74.15 and has touched a high and low of Rs. 74.50 and Rs. 73.65 respectively. So far 29165 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 79.00 on 07-Apr-2014 and a 52 week low of Rs. 37.55 on 06-Aug-2013. Last one week high and low of the scrip stood at Rs. 76.55 and Rs. 73.20 respectively. The current market cap of the company is Rs. 5975.30 crore. The promoters holding in the company stood at 37.53% while Institutions and Non-Institutions held 38.40% and 24.04% respectively. 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.