The stock market on Monday cheered reports of a succession plan at the Oberoi group. The share price of EIH increased by Rs 1 or 1.15% to close at Rs 87.9 on a day when the market benchmark Sensex at the Bombay Stock Exchange fell by 188.9 points.
Vikram Oberoi, son of PRS Oberoi, is slated to take the patriarch’s place as the group head. The company is yet to decide on the timing of the official succession announcement.
Arjun Oberoi, son of Tilak Raj Oberoi (PRS Oberoi’s brother) will look after the planning aspect of the company.
Vikram is currently chief operating officer of EIH, and Arjun chief planning officer. A detailed email query to Oberoi Group remained unanswered.
There is a possibility that EIH and EIH Associated Hotels could be merged in future.
“The impact of the announcement will be felt more if the new generation comes across with aggressive expansion plans. The company needs to increase its footprint,” an analyst with a leading consultancy firm told Hindustan Times.
The succession plans would not include Natasha, Oberoi’s daughter who is married and settled in Australia.