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Business News/ Markets / Stock Markets/  EIH shares rally 8% after company announces plans to construct Oberoi luxury resort in Goa
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EIH shares rally 8% after company announces plans to construct Oberoi luxury resort in Goa

EIH is slated to invest ₹421 crore for this endeavor, with the anticipated commencement of operations set for October 1, 2027. The company's Board of Directors greenlit the investment proposal during its meeting on March 28.

EIH share price rose over 8% on Monday, April 1Premium
EIH share price rose over 8% on Monday, April 1

Shares of EIH surged by almost 8% following the company's revelation of its intention to develop an Oberoi luxury resort in South Goa, earmarking an investment of 421 crore for the project.

In a recent filing with the stock exchange, the hospitality major announced that its Board has granted approval for the development of an Oberoi Luxury Resort, slated to occupy a 52-acre site at Cavelossim Beach in South Goa.

Also read: FY25 Outlook: Hotels to see revenue growth of 9-11%, a 3rd straight Year of growth- CareEdge

According to project specifications, the luxury resort will feature 90 rooms and suites, targeting both domestic and international travelers, the company disclosed to the exchanges.

EIH is slated to invest 421 crore for this endeavor, with the anticipated commencement of operations set for October 1, 2027. The company's Board of Directors greenlit the investment proposal during its meeting on March 28.

The mode of financing for the said project will be through internal accrual and debt, stated EIH in a recent exchange filing.

Further, EIH has signed another hotel management agreement, notably its second one as a luxurious Oberoi Resort at Bogmalo Beach in South Goa.

Also read: FPI inflows in debt market at nine-year high of 1.21 lakh crore in FY24; likely to help soften bond yields

Last month, the company’s unit, Oberoi Flight Services, received a penalty order of 1,51,630 from The Office of the Deputy Commissioner of State Tax in Mumbai, under Section 73 of the Central Goods and Service Tax Act, 2017.

It was in relation to excess outward tax in GSTR-1 as compared to GSTR-9/3B for the financial year 2020-21.

Shares of EIH Ltd were trading 5.73% higher at 474.5 apiece on the BSE. The stock has gained over 104.57% in last six months and 189.72% in the last one year.

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Published: 01 Apr 2024, 05:20 PM IST
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