Indian Hotels to issue securities to promoter

Indian Hotels Company Ltd has announced that the Board of Directors of the Company at its meeting held October 27, 2010, has approved, subject to the approval of the Members of the Company pursuant to Section 192A of the Companies Act, 1956, an issue of up to 3,60,00,000 Equity Shares ("Ordinary Shares") of face value of Re. 1 each in the financial year 2010-2011 and up to 4,80,00,000 Warrants with a right exercisable by the warrant holder to subscribe for One ordinary Share per Warrant which option shall be exercisable after April 01, 2011, but not later than 18 months from the date of issue of warrants.

The securities will be issued for cash to the main Promoter of the Company i.e. Tata Sons Ltd, on a preferential allotment basis, at such price and on such other terms and conditions as the Board may in its absolute discretion decide, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (ICDR Regulations).

The Company propose to obtain the content of the Members by means of a Postal Ballot, for which the Company has determined October 29, 2010, as the cut-off date to ascertain the list of Members and the voting rights on the paid-up value of shares registered in the name of the shareholders on the date of dispatch of the notice.

The stock closed the day at Rs.98.70, down by Rs.3.25 or 3.19%. The stock hit an intraday high of Rs.103 and low of Rs.97.85.

The total traded quantity was 7.52 lakhs compared to 2 week average of 2.08 lakhs.

Source : Equity Bulls

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