The Indian hospitality major Taj Hotels has said that its board has approved the proposed fundraising of ₹3,000 crore through rights issue, subject to requisite regulatory approval.
In a stock exchange filing. Indian Hotels Company (IHCL) said it board, during its meeting on Monday, “has, inter alia, considered and approved, subject to receipt of relevant approvals from regulatory authorities, as may be required, issue of equity shares by way of a rights issue to the existing shareholders of the company on a record date for an amount not exceeding ₹3,000 crore”.
Objective
The objective of the aforementioned Issue inter-alia is to meet the company’s financing needs for capital expenditure, growth plans and debt repayment and will be finalised in consultation with the merchant bankers.
Terms and conditions
The IHCL board has approved the formation of a committee of directors to decide on the terms and conditions of the rights issue, including the rights entitlement ratio, the issue price, record date, timing of the rights issue and other related matters.
Appointment of Additional director
The company also appointed Anupam Narayan as an Additional Director of the company in an independent capacity, not liable to retire by rotation, for a period of five years from August 23, 2021 to August 22, 2026.
The appointment needs to be approved by shareholders at the next general meeting.
Background of Anupam Narayan
Narayan has over 40 years of business experience and founded Rockwood Associates LLC in 2010, IHCL informed. Since then he has provided strategic advice to clients in Peru, India, China, Thailand and the United States. He most recently served as President and Chief Executive Officer of Red Lion Hotels Corporation.
“Under his leadership, the company [RLH Corporation] increased its focus on core business operations by divesting unrelated businesses, initiated a follow-on stock offering to raise equity, strengthened the balance sheet, improved its brand position and profitability, and increased investor awareness,” said the profile shared by IHCL.
From 1998-2004, he was with Best Western International, the world’s largest hotel chain headquartered in Phoenix, Arizona. He served as Senior Vice President for Global Strategy and as the Acting Chief Executive Officer. There he had global responsibility for Strategy, Brand Management, Finance, Quality, Franchising, Partner Relationships and Communications. He was instrumental in Best Western’s expansion in Asia and South America.
Prior to 1998, for twelve years he was with a Kohlberg, Kravis and Roberts (KKR) hotel and real estate company and closed $4 billion of debt financings, completed two initial public offerings which raised $300 million. He was actively involved with real estate development, joint ventures, divestment, mergers and acquisitions and the capital markets.
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With inputs from Mint.
