Mumbai: Shares of EIH Ltd on Monday rose over 8% on the Bombay Stock Exchange (BSE), bolstered by market regulator Sebi’s approval of rights issue of the Oberois-promoted company.
Heavy buying lifted shares of the company, which surged 8.02% to an early high of Rs121.90 on the BSE.
A similar uptrend was seen on the National Stock Exchange (NSE), where the stock was trading higher by 7.92% to a high of Rs121.90.
The market watchdog, Sebi, has approved the Rs1,300-crore rights issue which presents an opportunity for both RIL and ITC to increase their stake beyond 15%, which according to the takeover norms, will trigger the mandatory open offer.
RIL holds 14.80% stake in EIH, while ITC has 14.98% stake in the Oberoi group firm.
Meanwhile, the broader market bellwether Sensex was trading at 19,766.66, up 98.19 points at 10:58 am.