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Our Bureau

Mumbai, Aug. 22 Though EIH denied reports of its stake sale, the share price of the scrip soared 11 per cent on the BSE on Friday.

The stock opened at Rs 140 and went up more than 17 per cent to Rs 163.95 during intra-day trade before closing at Rs 155. A total of 22.82 lakh shares changed hands on the BSE on Friday .

On Thursday, too, the stock surged seven per cent with 5.8 lakh shares changing hands in a single block deal at Rs 140 on the BSE.

The stock has seen a rise of more than 20 per cent in its share price and almost 26 per cent in the last month.

It was reported on Thursday that the company “may part with a minority stake and issue fresh shares on the preferential basis to the strategic investor”. The report had also stated that Reliance Industries was one of the front runners and that that “talks between the top managements of both groups are at an advanced stage”. Responding to this report, in a notice issued to the NSE, the company stated that “the facts contained in the media are absolutely baseless, untrue and mischievous”.

The promoters of the company hold a total of 46.38 per cent stake in the company and others with a substantial stake in the company include Life Insurance Corporation (6.53 per cent) and Russell Credit (14.92 per cent).

Market analysts believe that the share price of the company surged on Friday as the investors felt that EIH might sell its stake. “During the initial stages of such developments parties involved always deny these reports, but if you see most of the time such deals do happen,” said the head of research at a brokerage.

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