Stocks

2 EIH promoters pledge stake

Our Bureau Mumbai | Updated on March 18, 2011 Published on March 18, 2011




In a fresh development EIH promoters, Mr Arjun Singh Oberoi and Mr Vikram Singh Oberoi, have pledged 39.03 per cent and 28.27 per cent of their stake respectively in the Indian hospitality company. EIH operates the Oberoi Group of Hotels and Resorts.

With this, the two promoters have pledged a total of 0.66 per cent stake of the company, said an announcement to the stock exchanges on Friday. The details of whom the shares have been pledged to were not revealed by the EIH.

The development could assume importance, as Reliance Industries and hospitality-to-tobacco major ITC's stakes in EIH are inches away from the open offer threshold of 15 per cent set by SEBI. While RIL, through one of its subsidiaries, holds 14.80 per cent stake in the company, ITC holds 14.98 per cent.

On March 8, Mr Arjun Oberoi pledged 16.50 lakh shares of the total 42.26 lakh shares that he owned, pledging a total of 0.42 per cent of the outstanding shares of the company, while Mr Vikram Oberoi pledged 9.5 lakh shares of the total 33.60 lakh shares held by him in EIH. He pledged a total of 0.24 per cent of the outstanding shares of the company.

EIH has also closed a rights issue earlier this week, which has been reportedly subscribed 1.17 times. Reliance and Mr Analjit Singh, Founder Chairman of Max India have subscribed to their portion of the issue. ITC has not commented on its move on the rights issue.

The EIH stock closed 1.52 per cent down on Friday at Rs 80.95 a share on the BSE.

Published on March 18, 2011
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