Indian Hotels Company has informed the stock exchanges that the board of Indian Hotels Company have decided to make 2 rights issues to the shareholders of Indian Hotels. In the first rights issue, shareholders of Indian Hotels will be offered equity shares of Indian Hotels at a price of Rs. 70 per share. Indian Hotels expects to raise Rs. 844 crores through this rights issue. In the second rights issue, Indian Hotels will offer 4% unsecured convertible debentures having a maturity period of 5 years and with face value between Rs. 150 to Rs. 180 per debenture which would be convertible into equity shares of Indian Hotels after a period of 2 years at a conversion price in the range of Rs 150 to Rs 180. If the share price of Indian Hotels is above the conversion price, after 2 years, then investors can convert the debentures into equity shares of Indian Hotels. On the other hand if the market price of Indian Hotels is below the conversion price, at the time of conversion, then investors could choose to hold the debentures till maturity and get the 4% interest.