The Economic Times quoted sources as saying that Indian Hotels Company (IHCL) is about to launch a QIP of Rs 2000 crore. The company will use the money raised from this QIP to expand its business. Sources told Economic Times that Indian Hotels has appointed ICICI Securities and Credit Suisse to conduct its QIP issue.
Indian Hotels is a Tata Group company. Through this QIP, the company will raise money from domestic and foreign institutional investors. In return, every investor will get shares of the company. However, Moneycontrol could not independently confirm this news.
Approval from QIP committee
On March 22, IHCL informed the exchanges that the meeting of the QIP committee of its Board of Directors was held on March 22. In which the launch of this QIP issue was approved. The floor price under this QIP has been fixed at Rs 203.48 per equity share.
The release date of this issue is March 22. The company can also offer a maximum discount of 5 percent on the floor price. However, the company has not given any information about the issue price. The company says that the issue price of the QIP will be determined in consultation with the Book Running Lead Managers appointed for the issue.
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IHCL MD and CEO Punit Chatwal has said that the money raised from the QIP will be used to make the company debt-free by reducing the company’s debt. Apart from this, this money will also be used on the expansion plan of the company.
Punit Chatwal had said in a conversation with CNBC TV 10 on March 22 that the hospitality business in the country is once again seeing a boom. The bookings done so far for March-April and May 2022 are higher than in the same period from 2019 onwards. He further informed that the company plans to open more than 1 new hotel every month in the calendar year 2022. The company wants to open 7 new hotels. Presently, the company’s portfolio comprises 32 hotels. Out of this, 58 are in the process of development. The company’s hotels are located on 4 continents, 11 countries and 100 locations around the world.
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