The shares of EIH gained 11 per cent on the BSE on Friday although the company denied reports that its founders were engaged in advanced discussions with leading corporate houses and private equity firms to sell a portion of their stake. The trading volumes on the exchanges aggregated 5.71 million shares, accounting for 1.45 per cent of the company’s outstanding equity capital.
There was a block deal of 580,000 shares, or 0.14 per cent of the company’s equity, on the BSE on August 21 at a price of Rs 140 a share. Since the block trade did not amount to 0.5 per cent of the company’s equity base, no disclosures were made to the exchange at the day’s end.
The delivery volumes on Friday were 16 per cent on the BSE and 21 per cent on the NSE compared to 50-60 per cent during normal trading sessions. This indicates profit booking after the denial by the company. The stock was trading at Rs 164 in morning trades, but ended at Rs 155.
The scrip outperformed the market over the past one month till August 21, rising 16.33 per cent compared to the BSE’s rise of 2.84 per cent. It also outperformed the market in the past one quarter, gaining 2.50 per cent compared to the decline of 17.4 per cent on the Sensex.