Mumbai: Indian Hotels Company Ltd, the Tata group firm that operates the Taj chain of hotels, has decided to mop up around Rs 1,700-1,900 crore via two rights issues to meet its long-term requirement for capital for expansion, including acquisitions. The company will mop up Rs 844 crore via a rights offer for equity shareholders, while it will raise Rs 900-1,080 crore via a similar offer for unsecured convertible debenture-holders. The company will offer one rights share to shareholders for every five shares they hold. The offer will be priced at Rs 70 apiece. Debenture holders will get one debenture for every 10 they hold. The debentures will carry a coupon rate of 4 per cent for five years. The debentures can be converted after two years at a price of Rs 150-180 apiece.
The rights issue will be the second offer by the company, the first being a 1:3 issue in 1993. The company unveiled two bonus issues 1:2 in 1989 and 1:1 in 1994. It will be among several Tata group companies such as Tata Steel, Trent, Tata Teleservices and Tata Coffee to have announced rights offers in the past one year. Indian Hotels Company is seeking rapid expansion in India and abroad. The company has inked agreements for Ginger hotels in Ahmedabad, Guwahati, Mangalore, Jamshedpur and Tiruppur.
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