Tata Group hospitality firm Indian Hotels is seeking shareholders' nod for lending Rs 700 crore to its subsidiary Lands End Properties Pvt Ltd. The company has sought shareholders' nod through a postal ballot to consent and approve the Board of Directors of the company to give loans in the form of inter-corporate deposits /secured or unsecured loans for a principal amount not exceeding Rs 700 crore to Lands End Properties Pvt Ltd (LEPPL), Indian Hotels said in a filing to the bourses. LEPPL is currently a wholly-owned subsidiary of the company, and proceeds of such loans shall be utilised by LEPPL for refinancing or redeeming its existing financial indebtedness including inter alia term loans, working capital facilities, any other credit facilities and/or non-convertible debentures issued by LEPPL, it added.
The company is also seeking approval from shareholders to provide "guarantee or letter of comfort for the obligations of Skydeck Properties and Developers Pvt Ltd", presently a one level step-down wholly owned subsidiary of the company. It is also seeking approval to create security over the shares of ELEL Hotels and Investments Ltd, an indirect subsidiary of the company for securing the obligations of Skydeck Properties and Developers Private Ltd. Shares of Indian Hotels today closed at Rs 111.55 on the BSE, up 3.77 percent from the previous close.
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