Indian Hotel Company to raise $197m through NCDs

20th April 2020 (Last Updated April 20th, 2020 15:54)

Indian Hotel Company's committee has given approval for raising Rs15bn ($197m) by issuing securities on private placement basis to Mumbai-based Axis Bank.

Indian Hotel Company to raise $197m through NCDs
Indian Hotel Company Limited operates the iconic Taj Mahal Palace and Tower hotel in Mumbai. Credit: ASaber91

Indian Hotel Company’s committee has given approval for raising Rs15bn ($197m) by issuing securities on private placement basis to Mumbai-based Axis Bank.

In a filing with Bombay Stock Exchange, the Tata group firm stated: “The Committee for long term Borrowings, has today by way of a circular resolution, considered and approved raising of funds by way of issuance of rated, unsecured, listed, redeemable, non-convertible debentures (NCDs) of face value of Rs 1m only aggregating to Rs 15bn only by way of private placement, to Axis Bank Ltd.”

The company did not divulge the details for raising the funds, reported Press Trust of India.

The firm proposes to list NCDs on the wholesale debt market category of National Stock Exchange of India. Its tenure is three years from the date of allotment.

On 18 March, Indian Hotels Company stated that some of its employees in Mumbai have tested positive for Covid-19. It did not divulge the number of affected employees.

The firm has conducted tests on around 500 employees.

It stated that most of the coronavirus-infected employees were “asymptomatic showing absolutely no signs of illness”.

“However, staff testing positive and symptomatic were duly hospitalised and others who were in contact with them have immediately been put in quarantine,” IHCL further added.

IHCL operates the Taj chain in India. Its premium hotels are accomodating doctors and healthcare workers, who are involved in the combat against the coronavirus pandemic in Mumbai.

The iconic Taj Mahal Palace and Tower hotel in Mumbai is currently operating with only minimal staff.