Mukesh Ambani-led Reliance Industries Ltd has become the largest non-promoter shareholder in EIH Ltd, ahead of ITC’s 14.98 per cent stake.
RIL has increased its stake by another 3.73 per cent in EIH, the hospitality firm that operates the luxury hotel chain Oberoi. The stake was acquired by RIL’s wholly owned subsidiary Reliance Industries Investment and Holding Pvt Ltd on Friday through open market transactions for Rs 191.83 crore. The shares were acquired from Max India promoter Analjit Singh’s entities – Gaylord Impex Ltd and Pivet Finances Ltd.
With this transaction, RIL’s stake in EIH increases to 18.53 per cent, making it the largest non-promoter shareholder. Till December 2011, RIL held 14.8 per cent through its arm while tobacco-to-FMCG major ITC held 14.98 per cent stake. PRS Oberoi-led promoter group holds 34.93 per cent stake in EIH.
The current transaction will not trigger an open offer since the threshold for a mandatory takeover offer was increased last year to 25 per cent from the previous 15 per cent. The first round of the transaction took place in April 2010.
After a rise over 12 per cent in a special market session on Saturday, the share price of EIH was trading at Rs 95 per unit at 11:08 am on the BSE on Monday, down 3.65 per cent. The shares were acquired by RIL at Rs 90 a piece.
For Q3 FY12, EIH reported a net sales growth of 4 per cent to Rs 314 crore, with net profit up 59 per cent to Rs 45 crore, compared to the year-ago period.
Another shareholder set to exit EIH is AIM-listed private equity firm Elephant Capital, which said it would be exiting its minority investments in public-listed Indian firms.