Chalet Hotels Shareholders Approve Rs 2,000 Crore Capital Raise

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New Delhi, March 11: Chalet Hotels Ltd announced on Monday that its shareholders have approved a special resolution to raise Rs 2,000 crore. The company had sought shareholder approval for a special resolution through a postal ballot notice dated January 24, 2024. The resolution aimed to consider and approve raising capital through public or private offerings, including a Qualified Institutions Placement to eligible investors by issuing equity shares or other eligible convertible securities for an amount not exceeding Rs 2,000 crore.

Overwhelming Support from Shareholders

The members of Chalet Hotels Ltd overwhelmingly approved the special resolution, as per a regulatory filing by the company. Out of the total votes cast, an impressive 99.97% voted in favor of the resolution, demonstrating the shareholders' confidence in the company's growth strategy and financial plans.

Expansion and Growth Opportunities

In its postal ballot notice, Chalet Hotels had highlighted its expansion phase and the promising growth opportunities it foresees. The company is actively evaluating both organic and inorganic options to enhance its market share and accelerate business growth. To achieve these ambitious goals, Chalet Hotels recognized the need for additional funds.

Utilization of Funds

The company outlined its intended use of the funds raised through the special resolution. The proceeds will be strategically allocated towards pre-payment and/or repayment of debt, organic and inorganic growth/expansion, redemption/restructuring of preference shares or other outstanding securities, and other general corporate purposes.

Chalet Hotels Ltd's successful shareholder approval of the special resolution to raise Rs 2,000 crore marks a significant milestone in the company's growth journey. With the overwhelming support of its shareholders, Chalet Hotels is well-positioned to capitalize on expansion opportunities, strengthen its financial position, and drive sustainable business growth in the future.