Sebi approves Indian Hotels’ proposal to raise upto Rs 1,000 crore via right issue

Capital market regulator Securities Exchange Board of India (Sebi) has approved Indian Hotels Company’s proposal to raise up to Rs 1,000 crore from rights issue. The company plans to utilize the proceeds of the issue towards part funding of capital expenditure requirements for construction of Vivanta by Taj, Guwahati as well as for funding the renovation to be undertaken at some of the company's existing hotels. Tata group firm Indian Hotels Company, back in April, filed draft documents with Sebi for the rights issue. The regulator received the draft documents through lead manager J M Financial Institutional Securities on April 23 and issued its observations on June 2, which is considered as a clearance to the issuer to go ahead with the share issues through routes like IPOs, FPOs and rights issue. 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.