Hospitality major East India Hotels (EIH) soars 20 per cent | business | Hindustan Times
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Hospitality major East India Hotels (EIH) soars 20 per cent

Hospitality major East India Hotels (EIH) today soared 20 per cent on its' stake sale deal with Mukesh Ambani-led RIL

business Updated: Aug 31, 2010 11:26 IST

Hospitality major East India Hotels (EIH) today soared 20 per cent on its' stake sale deal with Mukesh Ambani-led RIL, extending its gains for the second consecutive session. RIL itself was down over 1 per cent on BSE in the early trade.

EIH, which gained 11 per cent yesterday, started the day with a jump of 19.97 per cent, the maximum permissible one-day gain on the Bombay Stock Exchange, to Rs 180.80. The scrip was trading at Rs 161.95, up 7.47 per cent in the morning trade.

Shares of EIH saw a similar rise on National Stock Exchange and zoomed 20.01 per cent to a year high of Rs 181.10. However, shares of Reliance Industries (RIL) failed to cheer the deal and plunged 2.26 per cent to hit a month low of Rs 926.25, a day after the company bought a 14.2 per cent stake in EIH.

Yesterday, RIL had joined hands with promoters of the Oberoi group to thwart a possible takeover of EIH by key rivals ITC, by buying 14.12 per cent stake at Rs 1,021 crore in the company that runs the Oberoi brand of hotels and resorts. The stake purchase from Oberoi Hotels Private Limited and other promoters of EIH Limited was made through RIL's wholly-owned subsidiary, Reliance Industries Investment and Holding Private Limited.

ITC Ltd, which has 14.98 per cent in EIH Ltd rose 1.63 per cent to Rs 161.90 in the start of the trade. Meanwhile, the 30-share benchmark sensex was trading weak at 17,927.43, down 0.53 per cent from the previous close.