The promoters of the Oberoi Group are willing to increase their stake in EIH, the group’s flagship company, beyond the existing level of 46.37 per cent.
Responding to the company’s shareholders’ view that ITC had little more than 14 per cent stake in EIH, P R S Oberoi, Chairman, EIH, today said, “I believe that we intend to increase our shareholding in the company steadily. ITC has not annoyed us by investing in the company.” He added, “As a matter of principle, we have not invested in any other company.”
On the possible time-frame and extent of increase in the promoter’s stake, Oberoi said, “If funds are available, we can go up to 50 per cent and even more. We would like to increase the stake as soon as possible.
“I am not worried as our holding in the company is in a comfortable level and we would continue to hike our holding through creeping acquisition,” the EIH Chairman said.
Russell Credit, an arm of ITC, holds 14.92 per cent in EIH. If the holding touches 15 per cent, it will call for open offer under Sebi norms and lead to a mandatory open offer for another 20 per cent stake.
ITC had restricted their holding below 15 per cent since last few years. Y C Deveshwar, Chairman of ITC, had earlier described the company’s stake in EIH as “strategic investment.”
Oberoi said he did not hold a single share in any other company (pointing at hotel companies) “as we believe we have a great future”.