 "EIH AGM: Oberois likely to 'raise' stake in company")
After the EIH annual general meeting (AGM) on Tuesday, Vice-Chairman and Chief Executive Officer S S Mukherji told reporters the promoters had the option to increase their stake. “We will increase our stake in the firm as and when it is required,” he said. Currently, the promoters hold 36 per cent stake in EIH. The Mukesh Ambani-led Reliance Industries Investments and Holdings and ITC hold 18.53 per cent and 14.98 per cent, respectively.
In 2010, Ambani was brought in as a white knight by EIH Chairman P R S Oberoi, to ward off any threat from ITC.
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Last year, the promoters had raised their stake by 1.36 per cent. At that time, Mukherji had indicated the promoters wanted to raise their stake to more than 40 per cent.
When asked if Ambani would raise his stake, Mukherji said, “No further communication has been made with Reliance on the same.”
Nita Ambani, wife of Mukesh Ambani and a director on the EIH board, wasn’t present at Tuesday’s meeting. Responding to a shareholder’s query on why some directors were absent at the meeting, Mukherji said, “Some of the directors could not come for various reason, but that does not mean they are not interested in running the company.”
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The hospitality major is setting up a property in Navi Mumbai. While the land there is owned by Reliance, the property, a 160-key Trident spread across 15 acres, would be managed by EIH.
Apart from the Navi Mumbai project, no other project was being carried out in alliance with Ambani, he added.
Mukherji said, “EIH is not dependent on Reliance for capital.”
P R S Oberoi said the Trident property at Hyderabad would be opened soon. A company spokesperson said the 323-key property would be opened in the next two weeks.
EIH would continue its asset-light strategy and would focus more on managing properties. According to the company’s annual report, its 55-acre beach front site at Goa had received planning approval; an environment clearance was being awaited.
At the AGM, P R S Oberoi held policymakers responsible for the muted growth in the hospitality sector. “It is most unfortunate that the Centre and state governments haven’t realised the importance of the travel and tourism industry. It is vital that this sector is given the importance it so rightly deserves. The story of the sector is, unfortunately, of huge potential and missed opportunities. We need to change this urgently and develop a vibrant and globally relevant travel and tourism sector that would be attractive to foreign and domestic travellers for the benefit of the overall economy,” he said.