Indian Hotels Company (IHCL) is planning to cut its debt by Rs. 550 crore by utilising a part of the proceeds from its upcoming rights issue.
IHCL is to issue compulsorily convertible debentures (CCDs) for Rs. 1,000 crore on a rights basis.
According to the draft offer document filed by IHCL with Sebi, the company is planning to issue ‘compulsorily convertible debentures (CCDs)’ for an amount “not exceeding Rs 1,000 crore on a rights basis to the eligible equity shareholders of the company…”.
“The company intends to use Rs. 552.68 crore from the net proceeds towards full or partial repayment or pre-payment of certain borrowings availed by the company, including redemption premium on non-convertible debentures,” the company said in its letter of offer.
