scorecardresearchTata Group-backed Indian Hotels to launch QIP to raise <span class='webrupee'>₹</span>2,000 cr; floor price set at <span class='webrupee'>₹</span>203.48

Tata Group-backed Indian Hotels to launch QIP to raise 2,000 cr; floor price set at 203.48

Updated: 24 Mar 2022, 09:12 AM IST
TL;DR.

The aim of the QIP is to bolster its business expansion on the other side of the COVID-19 pandemic.

The Economic Times reported. As per the report, the aim of the QIP is to bolster its business expansion on the other side of the COVID-19 pandemic, the report said.

The Economic Times reported. As per the report, the aim of the QIP is to bolster its business expansion on the other side of the COVID-19 pandemic, the report said.

Tata Group-backed Indian Hotels Company (IHCL) will soon launch a qualified institutional placement (QIP) worth 2,000 crore, The Economic Times reported. As per the report, the aim of the QIP is to bolster its business expansion on the other side of the COVID-19 pandemic, the report said.

According to the report, sources told the paper that ICICI Securities and Credit Suisse will help the hotel chain raise funds from local and global institutional investors. Each investor will get shares of the company, it added.

On March 22, the company informed the exchanges that its Board of Directors’ QIP Committee in a meeting approved opening the issue on March 22 and the floor price for the issue has been set around 203.48 per equity share. Face value is Re 1 per share.

The exchange filing added that “relevant date for purpose of the issue” is March 22. “The floor price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is 203.48 per equity share,” it informed.

The company may offer a discount of not more than 5 percent on the floor price, added the filing. The statement did not specify the issue price but noted that it will be determined in consultation with the book running lead managers appointed for the issue.

Earlier in October 2021, IHCL announced plans to raise up to 2,000 crore each through rights issue and QIP (total 4,000 crore equity funds raise) subject to regulatory approvals, the ET report added.

IHCL MD and CEO Puneet Chhatwal told ET that the funds raised would enable the chain to be a zero debt company in the future and will help fund the company's expansion as well as its capital expenditure plans.

Chhatwal told PTI that COVID-19 variants such as the Omicron and BA2 have posed challenges, and also acknowledged geo-political tensions due to the Russia-Ukraine War, but maintained that the long-term outlook of the industry is going to be far more positive than it was 5-10 years ago.

"What we are experiencing in the last four to six weeks is such a strong revival. The long-term outlook of the hospitality industry is going to be far more positive than it ever was 5 to 10 years ago,” PTI quoted Chhatwal saying.

First Published: 24 Mar 2022, 09:12 AM IST