MUMBAI / DELHI: Indian Hotels Company (IHCL), which runs the Taj Group of hotels, plans to raise about Rs 1,000 crore through a rights issue to fund the expansion of its Sea Rock and Taj Lands End properties in Mumbai, people familiar with the development said.
The fund-raising plan may be discussed at IHCL’s planned board meeting on Monday, the persons cited earlier told The Economic Times.
IHCL declined to comment on the matter. According to people in the know, the company is planning to add 400-500 keys to these two properties. The capital raised from the rights issue will be used for this development and to expand to other cities.
In a statement issued to the Bombay Stock Exchange (BSE) on August 16, IHCL had stated that a meeting of the board of directors of the company will be convened on Monday, August 21, for considering various options for raising funds as the board may deem appropriate.
According to industry insiders, the Taj Group has been looking to expand the Sea Rock and Taj Lands End properties for a few years now, but nothing had been formalised so far.