Indian Hotels - Outcome of Board Meeting

Indian Hotels Company Ltd has informed that the Board of Directors of the Company at its meeting held on September 27, 2007, for approving the draft of the Offer document to be filed with SEBI, has decided to modify one of the two instruments comprising the Rights Issue. The modified Rights Issue proposals will now be as under:

The Company will make two simultaneous but unlinked Rights Issues as follows:-

(a) There will be no change in the Rights Issue of Equity shares to be offered to the shareholders in the ratio of 1:5 at a price of Rs 70 per share (of the face value of Rs l each). This issue will increase the Equity Capital by Rs 12.06 crores (over the present capital of Rs 60.29 crores) and will raise Rs 844 crores;

and

(b) In place of the proposed issue of 4% Fully Convertible Debentures announced earlier, it is now proposed to make a Rights Issue of 6% Non-Convertible Debentures (NCD) of the face value of Rs l00 each in the ratio of 1 NCD for every 10 Equity shares held with each NCD having a detachable Warrant which would give the holders the right to purchase 1 Equity share of the Company at a price in the range of Rs l30 to Rs l50 per share and this Right would be exercisable not later than 12 months from the date of allotment. The price at which the Warrants would be exercisable and the specific period for exercising the Warrants will be fixed at the time of the actual issue. The NCDs with a maturity of 3 years would raise an amount of Rs 600 crores and a further sum of Rs 780 crores to Rs 900 crores (depending on the price to be fixed) would be raised when the Warrants are exercised. The increase in capital from this modified instrument would remain at Rs 6 crores as earlier proposed.