EIH raises Rs 1,179 cr through rights issue

EIH Limited, which runs the Oberoi chain of hotels, has completed its rights issue of over 178 million shares to raise Rs 1,178.86 crore.

Against applications from shareholders for the allotment of 33 million additional equity shares, a total of 10 million shares were allotted, a company statement said. The committee of board of directors met on Saturday in Gurgaon and approved the allotment.

The draft letter of offer filed with the Securities and Exchange Board of India (Sebi) had indicated that corporate promoters of EIH—Oberoi Plaza Pvt Ltd, Bombay Plaza Pvt Ltd, Oberoi Leasing and Finance Private Ltd, Oberoi Properties Pvt Ltd, Aravali Polymers LLP, Oberoi Building and Investment Pvt Ltd, Oberoi Holdings Pvt Ltd and Oberoi Hotels Pvt Ltd—provided an undertaking on September 27, 2010, to the company that they would apply for additional equity shares to the extent of the unsubscribed portion.

The promoters had also said that on account of this subscription, the promoter group could acquire shares over and above their respective entitlement.

Mukesh Ambani—led Reliance Industries and Max Group Chairman Analjit Singh, who have stakes in EIH, have already confirmed that they have subscribed to the issue. ITC, which has a 14.98 per cent stake in EIH, has so far not commented whether it has subscribed.

The rights at a premium of Rs 64 per equity share were offered to those shareholders whose names appeared in the books of the company as on February 22, 2011 in the ratio of five equity shares for every 11 shares held on the record date.