Indian Hotels CompanyBSE 0.44 % (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 ET.
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.
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“The plan is to convert Sea Rock hotel into an ultra-luxury hotel and Lands End will operate as an upscale property,” said Siddharth Thaker, managing partner, Prognosis Global Consulting. “The additional floor space index at Lands End could be utilised for building luxury serviced apartments on the lines of Taj Wellington Mews at Colaba. So Lands End, Sea Rock and the serviced apartments could become one consolidated block and could consolidate IHCL’s leadership in the north and central Mumbai commercial district.” The company has been looking for a new managing director, chief executive to replace Rakesh Sarna, who resigned in May and is expected to continue in the same role till September 30.
