Eco Hotels and Resorts Ltd's Rights Issue Oversubscribed by 1.60 Times

Eco Hotels and Resorts Limited (BSE: 514402 | ECOHOTELS), a leading hotel operations and management company has successful raised funds through right issues. The issue was oversubscribed 1.60 times, reflecting robust trust and confidence from shareholders in the Company's long-term vision of achieving 5,000 hotel keys by FY 2030.

Total bid for 2,01,78,312 shares were received against issue size of Right Issue was 1,28,76,808 shares. The Company has raised INR 19.57 crore through Rights Issue. The rights issue was issued in the ratio of one share for every four shares held (1:4) at an INR 15.2 per share.

Structured as 1:4 ratio at INR 15.2 per share, with the first call of INR 3.8 per share (including a premium of INR 5.2 per share and INR 1.3 per share on call money).

The Rights Issue witnessed strong participation across promoters, senior management, institutional investors, high-net-worth individuals, and retail investors, underscoring Eco Hotels resilient fundamentals and growing presence in the hospitality sector.

Commenting on the outcome, Mr. Vinod Kumar Tripathi, Executive Chairman of Eco Hotels and Resorts Limited, said "The overwhelming participation by our shareholders reflects belief in our strategic vision and growth plans. The funds raised will further strengthen our balance sheet and will enable strategic investiments in leasing hotel properties across key growth areas in India, as well as selective acquisitions aligned with our long-term vision."

Planned deployment of proceeds from the Rights Issue includes:

- Leasing hotel properties on a long-term basis and making security deposits to property owners

- Providing construction advances where necessary to expedite hotel completions

- General corporate expenses

- Building a strong team across India to drive future-focused hospitality initiatives

The successful completion of this Rights Issue reinforces Eco Hotels and Resorts Limited's commitment to long-term value creation, innovation, and prudent financial management.

Source : Equity Bulls

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EcoHotelsandResorts FundRaising RightsIssue Oversubscription