EIH, Hotel Leela Venture, along with EIH Associated Hotels have rallied more than 3% after the market regulator introduced a new takeover code.
The new takeover code gives ITC more room to buy another 10% — till 25%. The fast moving consumer goods (FMCG) company held a little less than 15% stake each in hotel companies EIH and Hotel Leela Venture and is expected to acquire more shares in these companies.
The Sebi increased open offer trigger from 15% to 25% and open offer size from 20% to 26%. The market regulator also scrapped a non-compete fee.
EIH Associated Hotels has frozen at the upper circuit of 20% at Rs 165, followed by EIH up 7% at Rs 91 and Hotel Leela Venture up 3% at Rs 47.25 on the National Stock Exchange (NSE).
