EIH Ltd arm to raise Rs 110 cr via rights issue

EIH Associated Hotels Ltd, a part of the Oberoi Group, plans to raise Rs 110 crore by issuing equity shares on a rights basis to its existing shareholders. It plans to utilise the amount for repayment of loans and general corporate purposes, according to a document filed with the Securities and Exchange Board of India (Sebi).

It plans to issue fully paid-up equity shares of face value of Rs 10 each for cash at a fixed price per equity share, including a premium, to raise Rs 110 crore through a rights issue to the existing shareholders, according to the draft letter. However, the number of equity shares to be issued is not known. A senior official from EIH Ltd, the parent company of EIH Associated Hotels, said the rights issue would be announced depending on when the company got final observation from the market regulator.