Comments
The board of EIH Associated Hotels Ltd will consider on March 28, a proposal of rights issue as well as merger of the company's wholly owned subsidiary Island Hotel Maharaj Ltd with EIH Associated. Both the companies' headquarters are located in Chennai.
The realty major Rahejas, and EIH Ltd (as also Oberois) are principal promoters of the EIH Associated.
Ring-fenced
According to market observers, Oberois with the help of Mukesh Ambani Group has already ring-fenced the control over EIH Ltd. “This move could be seen as an obvious extension of a consolidation and control securing measure,” said an analyst with an institutional brokerage.
As on December 31, 2011, promoters holding in EIH Associated stood at 75 per cent. Rahejas, as co-promoters, hold almost equal stake in the company as Oberois.
Stakeholders
Interestingly, ITC Ltd and Reliance Industries Investment and Holding Pvt Ltd, as investors in the public category, hold 14.98 and 14.80 per cent stake respectively in the EIH Ltd. During the past few years Oberois could not come to terms with ITC's investment.
“However, offloading of a 2.18 per cent holding by Pivet Finances Ltd of Mr Analajit Singh of Max group was a positive for Oberois,” said an investment banker.
EIH Associated, incorporated in March, 1983, as Pleasant Hotels Ltd. In October, 1989, the name of the company was changed to Oberoi Associated Hotels Ltd. The company was re-christened in November, 1996.
According to market sources, Rahejas may not like to participate in the rights issue.
The EIH Associated stock finished at Rs 153.75, up 1.22 per cent on the NSE.
EIH Associated Hotels Ltd posted a net profit of Rs 10.02 crore for the quarter ended December 31, 2011 as against Rs 9.96 crore reported during December 31, 2010 quarter.
Net sales increased 5.28 per cent to Rs 58.94 crore during the third quarter from Rs 55.98 crore in the corresponding period last fiscal.
>jayanta_mallick@the hindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.