Indian Hotels Company (IHCL), one of Asia's largest group of hotels said that the board has approved plans to raise Rs 30 billion via rights issue.

"The board of directors of the company has considered and approved, issue of equity shares by way of a rights issue to the existing shareholders of the company on a record date for an amount not exceeding Rs 3,000 crore," the company said.

The objective of the aforementioned Issue inter-alia is to meet the company's financing needs for capital expenditure, growth plans and debt repayment and will be finalised in consultation with the Merchant bankers.

Shares of the company gained Rs 1.70, or 1.23%, to settle  at  Rs 139.55.  The total volume of shares traded  was  144,019 at  the BSE (Tuesday).