EIH to raise Rs 1,160 cr through rights issue

EIH that runs the Oberoi and Trident brands of hotels and resorts today said it will raise over Rs 1,160 crore through a rights issue that will open next month.

In a filing to the Bombay Stock Exchange (BSE), the company said it will issue 17.86 crore equity shares on a rights basis to its existing shareholders "aggregating to approximately Rs 1,161 crore".

Five equity shares will be issued for every 11 equity shares held by the shareholders as on the record date of February 22, it added.

The issue will open on March 1 and will close on March 15, it said.

"The issue price will be Rs 65 per equity share, including a premium of Rs 63 per share," the company said.

After the issue, the company's shares will increase to 57.16 crore from 39.3 crore at present.

EIH's rights issue has been closely followed by market watchers as rival ITC and Reliance Industries (RIL) are on the verge of exceeding the open offer threshold of 15% stake in the hospitality major.

While ITC has 14.98% stake in EIH, RIL has 14.8% stake.

EIH's scrips closed at Rs 93.50 per share, up 2.63% on the BSE.