EIH jumped 11.41% to Rs 151.95 at 13:43 IST on BSE, on recent reports a serial entrepreneur Analjit Singh is hiking his stake to become the biggest shareholder in the hotel chain and join the founding Oberoi family as vice-chairman and co-promoter
The stock had jumped 7.24% on Thursday, 15 October 2009.
Meanwhile, the BSE Sensex was up 129.75 points, or 0.75%, to 17,324.95
On BSE, 15.64 lakh shares were traded in the counter. The stock had an average daily volume of 83,702 shares in the past one quarter.
The stock hit a 52-week high of Rs 154 in intra-day trade today, 16 October 2009. The stock hit an intra-day low of Rs 136 so far during the day. The stock hit a 52-week low of Rs 74 on 7 November 2008.
The mid-cap stock had outperformed the market over the past one month till 15 October 2009, rising 14.30% as compared to the Sensex's 4.50% rise. It had also outperformed the market in the past one quarter, advancing 23.86% as compared to the Sensex's return of 20.64%.
The company's current equity is Rs 78.59 crore. Face value per share is Rs 2.
The current price of Rs 151.95 discounts the company's Q1 June 2009 annualized EPS of Rs 1.94, by a PE multiple of 78.32
As per reports, a deal is likely to be finalised early next month which will result in Analjit Singh owning a little over 26% in EIH. Analjit Singh's Max India group which has interests in healthcare, life insurance, clinical research, specialty plastic products and healthcare staffing businesses.
Analjit Singh and EIH chairman PRS Oberoi have already signed a non-disclosure pact, with due diligence for a final deal currently under way, reports added. Post the development, Analjit Singh and the Oberoi family would together hold a 52% stake in EIH. At the fag end of the trading session on Thursday, 15 October 2009, EIH clarified to the BSE that it was unaware of any share sale plans by its promoters.
The main object of the stake dilution by the founding Oberoi family is aimed at blocking any potential hostile bid from a domestic or foreign company. ITC, EIH's rival firm, holds a 14.98% stake in the EIH through Russell Credit.
As per the deal, the Oberoi family, which owns 43% in EIH, will sell a little over 17% to Analjit Singh for up to Rs 1,250 crore. Analjit Singh currently holds 4.32% in the EIH, reports indicated.
The report further informed that Analjit Singh is buying the stake in his personal capacity and Max India has no relation with the transaction.
If the deal goes through, Analjit Singh will make the mandatory open offer for an additional 20% stake, as per Indian takeover laws.
EIH owns and operates luxury hotels and resorts in India'. The company also manages a mid-price hotel chain in India, in addition to hotels in Egypt, Australia, Sri Lanka, Indonesia and Saudi Arabia.
EIH will declare its Q2 September 2009 results on 28 October 2009. The company's net profit fell 49.90% to Rs 19.05 crore on a 36.60% slide in net sales to Rs 149.81 crore in Q1 June 2009 over Q1 June 2008.