RIL buys 14.12% stake in EIH for Rs 1,021 cr

RIL has acquired 14.12 per cent stake in EIH that runs the Oberoi brand of hotels and resorts, for Rs 1,021 crore. The purchase is through RIL’s wholly-owned subsidiary Reliance Industries Investment and Holding Private Limited, from Oberoi Hotels Private Limited and certain other promoters of EIH Limited. RIL would support the management of EIH Limited and there is no change of management, operation or control of EIH Limited.

The development comes less than two months after Oberoi ruled out selling promoter stake in EIH Ltd, although he said he could not stop rival ITC from buying shares in the open market. Earlier this year, ITC Ltd had increased its stake to 14.98 per cent in EIH Ltd triggering speculation that the FMCG-to-hospitality conglomerate could go for an open offer once it crosses the 15 per cent mark. Oberoi’s have 46.4 per cent in EIH Ltd.