Restaurant India News: Eco Hotels Raises Rs 19.57 Crore via Oversubscribed Rights Issue for Expansion Push

Eco Hotels and Resorts Limited has successfully concluded its rights issue, which was oversubscribed 1.60 times, highlighting strong investor confidence in the company’s long-term strategy to achieve 5,000 hotel keys by FY 2030.

The company received total bids for 2,01,78,312 shares against the issue size of 1,28,76,808 shares, raising Rs 19.57 crore. The rights issue was structured in the ratio of one share for every four shares held at a price of Rs 15.2 per share, with the first call of Rs 3.8 per share, including a premium of Rs 5.2 per share and Rs 1.3 per share on call money.

The offering witnessed strong participation from promoters, senior management, institutional investors, high-net-worth individuals, and retail investors, reflecting the company’s robust fundamentals and its growing footprint in India’s hospitality sector.

Vinod Kumar Tripathi, Executive Chairman, Eco Hotels and Resorts Limited, said, “The overwhelming participation by our shareholders reflects belief in our strategic vision and growth plans. The funds raised will further strengthen our balance sheet and will enable strategic investments in leasing hotel properties across key growth areas in India, as well as selective acquisitions aligned with our long-term vision.”

The proceeds from the rights issue will be directed towards:

• Leasing hotel properties on a long-term basis and making security deposits to property owners

• Providing construction advances to accelerate hotel project completions

• Meeting general corporate expenses

• Strengthening teams across India to support future-focused hospitality initiatives

The successful closure of this rights issue reinforces Eco Hotels and Resorts Limited’s focus on sustainable growth, disciplined financial planning, and strategic expansion within India’s hospitality landscape.