Chalet Hotels Shareholders Approve Raising Of Rs 2,000 Crore

Chalet Hotels Ltd on Monday said its shareholders have approved a special resolution to raise Rs 2,000 crore.

The company had sought approval of its shareholders for a special resolution through a postal ballot notice dated Jan. 24, 2024 to consider and approve raising of capital by way of public or private offerings, including through a Qualified Institutions Placement to eligible investors through an issuance of equity shares or other eligible convertible securities for an amount not exceeding Rs 2,000 crore.

"The members of the company have approved the special resolution," Chalet Hotels Ltd said in a regulatory filing.

Out of the total votes cast, 99.97% voted in favour of the resolution, the filing added.

In its postal ballot notice, Chalet Hotels had said it is "in expansion phase and foresees opportunities for growth, as it continues to evaluate organic and inorganic options to improve its market share and accelerate its business growth and would require funds for achieving such growth and expansion".

The company had stated that it intended to utilise the proceeds towards pre-payment and/or repayment of debt; organic and inorganic growth/expansion; redemption/restructuring of preference shares or other outstanding securities along with other general corporate purposes.