Hospitality firm EIH approves rights issue to raise up to Rs 350 crore

Hospitality major EIH Ltd, which runs hotels and resorts under the Oberoi brand, on Thursday said its rights issue committee has approved raising of up to Rs 350 crore.

The committee in its meeting held on Thursday approved the issue of 5,37,94,768 equity shares of face value Rs 2 each aggregating nearly Rs 350 crore on full subscription, EIH Ltd said in a regulatory filing.

The rights issue price has been fixed at Rs 65 per equity share, including a premium of Rs 63 per equity share over face value of Rs 2 per share, it added.

The company further said the rights entitlement ratio has been fixed at eight equity shares for every 85 equity shares held by eligible equity shareholders of the company as on the record date, which has been fixed as September 23, 2020.

Earlier on September 7, the board of directors of the company had approved the offer and issue of equity shares of the company by way of a rights issue, for an aggregate amount of up to Rs 350 crore in accordance with applicable laws, the filing said.