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Even as details of EIH's Rs 1,300 crore rights issue are awaited, the hospitality major and promoter of the Oberoi Group of Hotels posted a 27 per cent increase in net profit to Rs 28.3 crore for the third quarter ended December 31, 2010, as compared to Rs 22.3 crore in the corresponding quarter last year.
The company's total income increased 26 per cent to Rs 301 crore from Rs 239 crore in the same quarter last year.
The insurance claim settlement for loss of business as a result of the terrorist attack on The Oberoi, Mumbai, and The Trident, Nariman Point, Mumbai, are still pending, the company said, in a notice to Bombay Stock Exchange on Monday.
“Settlement of claims for damage is also pending and no effect has been given in the books of accounts in respect of the damage caused to the two properties,” said the statement.
Silence on Rights Issue
The company also said that the Board had approved the rights issue in September last year and has filed the draft ‘Letter of Offer' with the Securities Exchange Board of India. However, it has not announced details on pricing and ratio of the rights issue.
EIH had, in the past, said it would utilise the proceeds of the Rs 1,300-crore issue to repay part of its debt, for capital expenditure and general corporate purposes.
The outcome of this rights issue gains importance because its subscription is what will now shape the shareholding of EIH.
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