Eco Hotels and Resorts Limited has raised funds through its rights issue. The issue was oversubscribed 1.60 times, reflecting robust trust and confidence from shareholders in the company’s long-term vision of achieving 5,000 hotel keys by FY 2030.
Subscription details
A total bid for 2,01,78,312 shares was received against the issue size of 1,28,76,808 shares. The company raised INR 19.57 crore through the rights issue, structured in a 1:4 ratio at INR 15.2 per share, with the first call of INR 3.8 per share (including a premium of INR 5.2 per share and INR 1.3 per share on call money).
Wide participation across investor segments
The rights issue witnessed strong participation from promoters, senior management, institutional investors, high-net-worth individuals, and retail investors, underscoring Eco Hotels’ resilient fundamentals and growing presence in the hospitality sector.
Leadership remarks
Commenting on the outcome, Vinod Kumar Tripathi, Executive Chairman of Eco Hotels and Resorts Limited, 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, as well as selective acquisitions aligned with our long-term vision.”
Planned deployment of proceeds
- Leasing hotel properties on a long-term basis and making security deposits to property owners
- Providing construction advances where necessary to expedite hotel completions
- General corporate expenses
- Building a strong team across India to drive future-focused hospitality initiatives
