Eco Hotels and Resorts raises Rs 19.57 crore through rights issue

Mumbai, Oct 8 (PTI) Eco Hotels and Resorts on Wednesday said it has raised Rs 19.57 crore through a rights issue which has been subscribed nearly 1.6 times.

The rights issue was issued in the ratio of one share for every four shares held (1:4) at Rs 15.2 per share. Total bids for 2,01,78,312 shares were received against the issue size of 1,28,76,808 shares.

The company will use the proceeds for leasing hotel properties on a long-term basis and making security deposits to property owners; providing construction advances where necessary to expedite hotel completions; and meeting other general corporate expenses.

Eco Hotels and Resorts Executive Chairman Vinod Kumar Tripathi said, “The overwhelming participation by our shareholders reflects belief in our strategic vision and growth plans. The funds raised will further strengthen our balance sheet and will enable strategic investments in leasing hotel properties across key growth areas in India.” The company looks to build a strong team across India to drive future-focused hospitality initiatives and targets to achieve 5,000 keys by 2030. PTI HG MR