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Mumbai, Aug. 13 Indian Hotels Company Ltd, owners of the Taj group of hotels, informed BSE on Monday that the Board of Directors of the company has decided to make a rights offer to raise around Rs 1,900 crore through two simultaneous but unlinked issues to the shareholders.

The company has announced one Rights Issue of equity shares in the ratio of 1:5 at a price of Rs 70 per share, with a total amount of Rs 844 crore.

Another rights issue will be in unsecured convertible debentures of the face value in the range of Rs 150 to Rs 180 each available to shareholders in the ratio of 1:10.

The debentures carry an interest rate of four per cent and will have a maturity of five years. Investors will have a one time option after two years to convert each debenture into one equity share of the company at the same price.

The company expects to raise an amount in the range of Rs 900 crore to Rs 1,080 crore through it.

Indian Hotels informed the exchange that the exact terms of this convertible debentures issue would be determined at the time when it is actually to be made.

It said that the objective of the two issues is to meet the company’s long term financing needs for capital expenditure and growth plans, including possible acquisitions.

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