The board of directors of the Indian Hotels Company approved issuance of equity shares to New Vernon and TICL on a preferential basis, the company said in its stock filing on Friday.
The Tata subsidiary will issue equity shares to both companies having a face value of Re 1 each, for consideration other than cash.
“The Board has approved the issuance of equity shares of the Company on a preferential basis to New Vernon and TICL, having face value INR 1 each, for consideration other than cash, under the acquisition of the New Vernon Swap Shares and the TICL Purchase Shares (collectively, the Subscription Shares), in accordance with Chapter V of the ICDR Regulations and other applicable laws,” the company said in its BSE filing.
The company will determine the floor price for the preferential issue on ‘Relevant Date’ which is falling on November 2, 2023.
The company shares closed 0.11% lower at ₹374.65 per share on BSE on Friday. After the allotment of shares on a preferential basis, New Vernon will hold around 28,99,996 shares (approx), which will be equal to 1.27% of equity shares of the IHCL. TICL will hold a total of 1,79,89,686 shares post preferential allotment.
The exact number of IHCL shares to be held by the two firms will be calculated on the relevant date. The total number of shares to be issued will be based on the issue prices which will be determined based on a range of factors including the share swap ratio, floor price on the Relevant Date, and the fair value per equity share of the Company as on the Relevant Date, according to IHCL BSE filing.
Preferential shares, also known as preferred shares, or preference shares, are a type of equity security that represents ownership in a company. These shares act as both equity and debt instruments. Owners of preferential shares are prioritised over common shareholders at the time of dividend payment.
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Updated: 27 Oct 2023, 04:20 PM IST