Takeover rule change lifts EIH stock

The revision in Sebi's takeover guidelines boosted the share price of EIH as investors flocked to the counter hoping the new norms will offer the two large non-promoter shareholders, RIL and ITC, an opportunity to further strengthen their holding in the hotel major. Shares of EIH, owner of Oberoi and Trident brands of hotels, held firm even in an otherwise choppy market on Friday. The stock rose to an intra-day high of 99.5, before closing with a sharp gain of 12.5% at 96 on the Bombay Stock Exchange.

The counter attracted major buying with over 21-lakh shares changing hands, compared with the two-week average of 32,000 shares. More than two-thirds of the traded shares actually changed hands, reflecting genuine buying interest in the stock. Sharp gains in EIH had its positive impact on another group company, EIH Associated Hotels, which hit the 20% upper circuit to end at 165.6 on Friday.