IHCL Invests Rs 220 Cr in Netherlands Subsidiary

New Delhi, Oct 24 (PTI) The country's biggest hospitality firm Indian Hotels Company Limited (IHCL) has announced a capital infusion of nearly Rs 220 crore into its wholly owned subsidiary IHOCO BV, based in the Netherlands.

The investment amount will be used by IHOCO BV to further invest in its subsidiaries for repayment of debt and operational requirements, Tata Group-owned IHCL said in a late-night regulatory filing to the exchanges on Thursday.

IHOCO BV, a wholly owned subsidiary of IHCL, is its apex holding company for overseas hospitality investments. It was incorporated on June 29, 1984.

In a regulatory filing, IHCL said it has "infused USD 25 million as equity in its wholly owned subsidiary in the Netherlands, i.e. IHOCO BV. The investment amount will be used by IHOCO BV to further make investment in its subsidiaries, inter alia, for repayment of debt and operational requirements".

The transaction involves a cash consideration of Rs 219.69 crore, which would be paid to IHOCO at a conversion rate of USD to Rs 87.875, as per the regulatory filing.