on Jun 23, 2021)Mumbai: Indian Hotels Company (IHCL), which runs the Taj chain, may consider raising equity to help it deal with the impact of the coronavirus that brought room occupancies down to 38% in April this year. The last time IHCL raised equity was in 2017 in the form of a rights issuance.
While IHCL didn’t specify the type of equity raise it would opt for, chairman N Chandrasekaran said capital infusion in some form in the company is important. It will not only help to navigate the immediate months but also prepare for the future, he told IHCL shareholders at its 120th annual general meeting held on Tuesday. If IHCL finalises the plan, it will join a list of hospitality and aviation companies that have raised or are raising money via equity to ride out the coronavirus crisis.
Currently, the Tata Group holds 41% in IHCL, which plunged into a Rs 720-crore loss in fiscal 2021 on account of the public health crisis that devastated travel and restricted hotel operations.
