EIH gains on fixing rights issue terms

EIH rose 1.74% to Rs 87.90 after the company said its rights issue committee has approved raising upto Rs 350 crore.

EIH said its rights issue committee in its meeting held on Thursday approved the issue of 5,37,94,768 equity shares of face value Rs 2 each, aggregating nearly Rs 350 crore on full subscription, EIH said in a regulatory filing. The rights issue price has been fixed at Rs 65 per equity share, it added.

The company further said the rights entitlement ratio has been fixed at 8 equity shares for every 85 equity shares held by eligible equity shareholders of the company as on the record date, which has been fixed as 23 September 2020.

Earlier on 7 September, the company's board had approved the rights issue of equity shares for an aggregate amount of up to Rs 350 crore.

On a consolidated basis, EIH reported net loss of Rs 152.06 crore in Q1 June 2020 as against net loss of Rs 1.13 crore in Q1 June 2019. Net sales slumped 91.3% to Rs 29.74 crore in Q1 June 2020 over Q1 June 2019.

EIH, under the aegis of The Oberoi Group, operates hotels and cruisers in five countries under the luxury 'Oberoi' and five-star 'Trident' brands. The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters.

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