EIH Associated Hotels greenlights bonus share issue; Stock surges 9%

Shares of EIH Associated Hotels, the flagship company of the Oberoi Group soared up to 9.4 per cent at Rs 925 per share on the BSE in Friday’s intraday trade. 

The stock price experienced a surge following the company board's decision to approve a bonus share issuance plan. Under this plan, shareholders will receive one fully paid-up bonus equity share of Rs. 10 each for every one existing fully paid-up equity share of Rs. 10 each held as of the record date, the company said in an exhange filing. 

The company has set Monday, July 29, 2024, as the record date for identifying eligible shareholders entitled to receive the issuance of Bonus Shares. The company plans to issue 3,04,68,147 equity shares having face value of Rs 10 each.

An amount of around Rs 30.46 crore will be utilised from the securities premium for the issuance of bonus shares. As of March 31, 2024, the securities premium available amounts to Rs 107.70 crore, the company informed in an exchange filing on Thursday. 

Before the bonus issue, the paid-up share capital of the company stood at Rs 30,46,81,470, divided into 3,04,68,147 equity shares of face value of Rs 10 each. Following the bonus issue, the paid-up share capital will amount to Rs 60,93,62,940, divided into 6,09,36,294 equity shares of Rs 10 each.

The dispatch of bonus shares will be completed within 2 months from the date of the board's approval, i.e., on or before August 13, 2024.

At 02:28 PM; the stock of the company pared some of its gains and was trading 7.44 per cent higher at Rs 908.70 per share. In comparison, the NSE Nifty50 rose by 0.21 per cent.