Reliance Industries has forayed into hospitality sector today. Through its wholly owned subsidiary Reliance Industries Investment and Holding Private Limited, it has acquired 14.12% in EIH for a total cost of Rs 1021 crore. The stake buy works out to Rs 184 per share. RIL’s subsidiary bought shares from Oberoi Hotels Private Limited and certain other promoters of EIH Limited.
*Earlier, Analajit Singh of Max India, who also holds under 5% stake in EIH, was interested in hiking stake his share. However, talks failed over differences in valuations.
*ITC, which holds 14.98% stake in EIH, declined to comment on the deal. However, it reiterated that it will not make a hostile bid for EIH.
So future of the stock looks bullish from hereon. One can invest in the stock with long term view.
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