The rights issue of EIH Ltd, which runs hotels and resorts under the Oberoi brand, has been over-subscribed, with ₹561 crore being offered against the issue size of ₹350 crore. EIH offered 5.37 crore shares for subscription to existing shareholders at ₹65 a share. The rights issue opened on September 29 and closed on October 13. The firm received applications for 8.63 crore shares, or 160 per cent, of the issue size at the close, market sources said.
In all, ₹561 crore worth shares were bid for, they said. EIH plans to use about ₹280 crore out of the net proceeds to repay/prepay some existing borrowings. The remaining ₹65.98 crore will be used for general corporate purposes.
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