Unlike other sectors which are painting aggressive growth stories [we have to see their execution capabilities yet], the Hotel sector is something being invaded by Realty companies in India now. Existing big players, Indian Hotels[Taj Group by Tata] and Oberois have a very laid back expansion plans.
The demand-supply mismatch will likely continue for at least the next 18 months.
Rights Issue to Dilute Equity:The company intends to raise Rs14.4 billion through a rights issue of equity shares and non-convertible debentures. Further, it will issue warrants that will be convertible into equity 12 months after the rights offering. This should raise an additional Rs7.8-9 bn. However, these rights offerings
will dilute earnings by 30%.
MS forecasts a 29% earnings CAGR in F2007-09, EPS (more…)
