Indian Hotels shares surge 3% as board approves QIP; Rakesh Jhunjhunwala stock nearly doubles in a year

Rakesh Jhunjhunwala-owned Indian Hotels Company Limited's (IHCL) shares surged 3 per cent to Rs 215 per share on the BSE on Wednesday. The surge came in the stock after the Tata Group company approved qualified institutional placement (QIP) issue on Tuesday. 

The hotel chain company has proposed to mobilize around Rs 2,000 crore through QIP and fixed floor price at Rs 203.48 per share, Indian Hotels said in a filing to exchanges.  

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In a separate filing, it also said, “The QIP Committee 2021-22 to meet on Friday, March 25, 2022 to consider and approve the issue price, including a discount, if any thereto as permitted, for the equity shares to be allotted to qualified institutional buyers, pursuant to the Issue.” 

Ace investor Rakesh Jhunjhunwala along with his wife Rekha Jhunjhunwala held 28,566,965 equity shares, which translates into about 2.2 per cent shareholding in the company, as per the December 2021 shareholding pattern available on the BSE. 

Rakesh Jhunjhunwala, who is termed as the Big Bull of Indian stock market, along with associates holds publicly around holds 37 stocks with a net worth of over Rs 33,992.4 crore, according to stock analysis website trendlyne.com. 

The company also reported its December-end quarter for the financial year 2021-22 earnings. The revenue from operations more-than-doubled to Rs 1408 crore as compared to Rs 669 crore in a year-ago quarter. While its loss narrowed to Rs 120 crore versus Rs 475 crore year-on-year (YoY). 

The shares of Indian Hotels were trading up around 2 per cent to Rs 212.4 per share, as compared to 0.25 per cent rise in the S&P BSE Sensex at around 10:56 am. The stock in the last one year almost doubled or gain of 93 per cent as against 16 per cent surge in the S&P BSE Sensex. 

In November 2021, Indian Hotels had raised Rs 1,982 crore through rights by issuing 132 million equity shares at a price of Rs 150 per share.