EIH Associated Hotels Board approves Rights Issue

The Board of Directors of the Company at its meeting held on March 28, 2012, has approved the issue of equity shares of the face value of Rs. 10 each of the Company to the existing equity shareholders of the Company on a rights basis ("Rights Issue") aggregating upto Rs 1,100 million subject to all applicable statutory and regulatory approvals. The terms and conditions of the Rights Issue including the rights entitlement ratio, the issue price, Issue size, record date and other matters shall be decided by a committee of Board constituted for this purpose ("Rights Issue Committee") in consultation with the lead manager to the Rights Issue.

The Board also approved the Amalgamation of Company's wholly owned subsidiary, Island Hotel Maharaj Ltd with the Company, subject to all applicable statutory and regulatory approvals, and subject to the scheme of amalgamation ("Scheme") of Island Hotel Maharaj Ltd ("IHML") with the Company being sanctioned by the Hon'ble High Court of Judicature at Madras, in terms of the draft laid before the meeting, or with such alteration or modification thereof as may be directed by the said High Court.

The EIH Associated Hotels Ltd stock closed the day at Rs.158.50, down by Rs.3.75 or 2.31%. The stock hit an intraday high of Rs.165.70 and low of Rs.155.85.

The total traded quantity was 0.14 lakhs compared to 2 week average of 0.19 lakhs.

Source : Equity Bulls

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