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Corporate Sep 10, 2012

ITC raises stake in EIH, buys shares for Rs 42 crore

Diversified business firm ITC raised its holding in hospitality company EIH by acquiring an additional one percent stake for Rs 42 crore through open market transactions.

According to bulk data available with the stock exchanges, ITC acquired 57.38 lakh shares in EIH through its subsidiary Russel Credit. The shares were purchased on an average price of Rs 73 apiece taking the deal size to Rs 41.89 crore.

At the end of June quarter, ITC held 14.98 percent stake in EIH, while promoter entities and Mukesh Ambani group firm Reliance Industries Investment and Holding held 35.23 percent and 18.53 percent stake respectively.

Reuters

Meanwhile, global banking major HSBC offloaded its entire holding of one per cent in EIH, after having recently exited from three lenders -Axis Bank, Yes Bank and Federal Bank.

HSBC, which held 57.44 lakh shares, or one per cent stake in EIH through HSBC Bank (Mauritius) Ltd as on June quarter, offloaded its entire stake for Rs 42 crore, BSE data showed.

The UK-based entity has garnered an estimated Rs 2,800 crore through sale of shares in Yes Bank, Axis Bank and Federal Bank. While Axis Bank and Yes Bank shares were sold in June this year, HSBC sold shares held in Federal Bank in late-August.

It had sold its holding of nearly five percent stake in Kerala-based private sector lender Federal Bank for a little over Rs 341 crore. Prior to that, HSBC had sold its 4.75 percent stake in Axis Bank for about Rs 1,880 crore and its 4.76 percent holding in Yes Bank for about Rs 545 crore.

The sale was part of a global exercise to shore up the UK-based entity's capital by liquidating non-strategic holdings.

PTI


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