Capital Raised, Share Base Expanded: Asian Hotels North’s Rs 765 Crore Preferential Issue Unveiled

Image Source: Asian Hotels North

Asian Hotels (North) Limited’s Board approved increasing authorized share capital to ₹75 crore and a preferential issue of 2.32 crore equity shares at ₹330 each to Elana Holdings PTE. LTD, potentially raising ₹765 crore. An Extraordinary General Meeting is set for November 8, 2025, for shareholder approval.

Asian Hotels (North) Limited’s Board of Directors delivered significant corporate decisions on October 14, 2025, aimed at bolstering the company’s capital base and funding future growth initiatives. The Board approved an increase in the company’s authorized share capital from ₹70 crore to ₹75 crore, subject to shareholder and regulatory approval, including amending Clause V of the Memorandum of Association to reflect this change.

In a major funding move, the Board sanctioned a preferential allotment of up to 2.32 crore equity shares at ₹330 per share to Elana Holdings PTE. LTD, a non-promoter investor. The issue price consists of a ₹10 face value and a ₹320 premium per share, complying with SEBI’s ICDR Regulations. This preferential issue is expected to raise approximately ₹765 crore and will significantly reshape the company's equity distribution, with Elana Holdings poised to hold a 54.37% stake on a fully diluted basis after allotment.

The company will hold an Extraordinary General Meeting (EGM) on November 8, 2025, to seek shareholder approval on these critical decisions. The cut-off date for shareholder eligibility to receive EGM notices and vote will be October 10, 2025. The Board has also appointed Chandrasekaran & Associates as scrutinizers for a fair and transparent e-voting process.

Key Highlights:

Authorized share capital increase approved from ₹70 crore to ₹75 crore, involving an addition of 50 lakh equity shares.
Preferential issue approved for issuance of maximum 2.32 crore equity shares at ₹330 each to Elana Holdings PTE. LTD.
Fundraise through preferential issue estimated at ₹765 crore, including share premium.
Elana Holdings set to gain significant control with a 54.37% stake post allotment.
Proposed changes subject to shareholder and regulatory approvals including SEBI and stock exchanges.
Extraordinary General Meeting scheduled for November 8, 2025, with notice dispatch cut-off on October 10, 2025.
Appointment of independent scrutinizers to oversee e-voting for the EGM.

These decisive actions position Asian Hotels (North) Limited to strengthen its financial foundation and pursue strategic growth opportunities while potentially altering ownership structure significantly. Market participants and shareholders will closely monitor the upcoming EGM outcomes that could transform the company’s trajectory.

Sources:: Asian Hotels (North) Limited official announcements, BSE Ltd, National Stock Exchange of India, Chandrasekaran & Associates, SEBI ICDR Regulations compliance documents.

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