The Hindu Business Line : EIH board okays equity issue up to Rs 400 crore

Kolkata March 9 The board of EIH Ltd, at its meeting held on Thursday, considered and approved issue of equity shares, either in India or as international offering in one or more foreign markets, of an amount not exceeding Rs 400 crore.

This could be denominated either in rupees or equivalent foreign currency.

This amount will be inclusive of any premium that may be determined by the EIH board.

Talking to Business Line, Mr S.S. Mukherjee, Managing Director, EIH Ltd, said the proposed equity infusion was for part-financing the on-going hotel projects.

Shareholder approval was being sought through postal ballot.

Hotel Projects

He said any further market borrowings would be strictly need-based.

Ballots are being dispatched, and the results would be declared by the appointed scrutinizer before April 7, 2007.

Many on-going hotel projects of the company are set for completion by around 2010, and some even earlier in 2008, he pointed out.

While the Bandra-Kurla hotel project is estimated to cost Rs 800 crore, the Rajgarh project entails an investment of Rs 60 crore.

Mr Mukhrjee said work was apace at the Trident Hotel by EIH at the Bangalore International Airport.

The project is a joint venture with L&T, which is doing the construction part. L&T holds 74 per cent in the project, with EIH's equity stake being 26 per cent.

The project is scheduled for completion by end 2008. He said Kotak Mahindra Capital Co Ltd has been appointed as the global co-ordinator and sole bookrunner.

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