Oberoi group firm EIH Associated Hotels today said its board has approved raising of up to Rs 110 crore through a rights issue.
In a filing to the BSE,the company said it will issue equity shares of face value of Rs 10 each to its existing shareholders.
“The terms and conditions of the 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 in consultation with the lead manager,” the filing said.
In a meeting held today the board also approved amalgamation of EIH Associated’s wholly-owned subsidiary Island Hotel Maharaj Ltd with the company.
The amalgamation is subject to subject to statutory and regulatory approvals,and subject to the scheme of amalgamation being sanctioned by the High Court of Madras,the filing added.
EIH Associated Hotels,an associate company of Oberoi Group’s EIH Ltd,manages and operates five star hotels in major tourist destinations in India.
The firm’s scrips closed at Rs 158.50 per share,down 2.31 per cent from the previous close on the BSE.