Indian Hotels invests ₹90 crore in two subsidiaries via rights issue; Details here

“ This is to inform you that The Indian Hotels Company Ltd has, on November 22, 2023, invested ₹55 crore in the equity shares of Genness Hospitality Private Ltd and ₹35 crore in the equity shares of Qurio Hospitality Private Ltd by way of subscription to Rights Issues,” Indian Hotels Company said in a regulatory filing.

Genness Hospitality, established on February 1, 2022, is currently in the process of developing a greenfield project known as Vivanta Hotel in Ekta Nagar, Gujarat. The investment entails acquiring equity shares of Genness, a pre-existing wholly-owned subsidiary of The Indian Hotels Company. This recent infusion ensures that the company retains its complete 100% ownership of Genness.

At the same time, Qurio Hospitality Private Ltd, established on February 2, 2022, for the initiation of a greenfield project (Ginger Hotel) in Ekta Nagar, Gujarat, is presently advancing through the development phase.

The transaction involves acquiring equity shares of Qurio, an existing wholly-owned subsidiary of The Indian Hotels Company Ltd. Despite this investment, the company’s ownership in Qurio remains unchanged at 100%.

In the second quarter of FY24, The Indian Hotels Company reported a consolidated profit after tax (PAT) of ₹67 crore, reflecting a 37% increase. In the same period last year, the PAT was ₹121.56 crore.

The total income from operations for the July-September period rose to ₹1,480.87 crore, compared to ₹1,257.57 crore in the corresponding quarter of 2022-23. Total expenses also increased to ₹1,248.68 crore, up from ₹1,101.20 crore.

Indian Hotels share price ended at ₹419.90 per share, up by 0.70% on NSE. The stock opened at ₹417 in early morning trade on Thursday.

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Updated: 23 Nov 2023, 10:36 PM IST