Shares of EIH Associated Hotels, the flagship company of The Oberoi Group, surged nearly 10% on the National Stock Exchange (NSE) and hit a 52-week high ahead of the company’s board meeting on Friday, June 14. The board is set to consider and approve the issuance of bonus shares to equity shareholders.
In a filing to the exchanges, EIH Associated Hotels stated, “The meeting of the Board of Directors of the Company will be held on Friday, June 14, 2024, to consider and recommend, inter alia, capitalization of reserves by issuing Bonus Shares to the Equity Shareholders of the Company, subject to the approval of the Shareholders.”
This will be the first-ever bonus share issue undertaken by the company. A bonus issue involves distributing free shares to existing shareholders, allowing the company to capitalize on its free reserves, increase its Earnings Per Share (EPS) and paid-up capital, and reduce its reserves.
Only investors who buy the stock before the ex-date will be eligible for the bonus shares. If purchased on or after the ex-date, investors will not be eligible for the bonus shares.
EIH Associated Hotels is part of the Oberoi Group, which owns and manages 20 hotels under the luxury Oberoi Hotels & Resorts brand and 10 five-star properties under the Trident Hotels brand. The company also provides services in flight catering, airport restaurants, travel and tours, car rentals, project management, and corporate air charters.
As of 11:30 AM, the shares were trading 9.22% higher at ₹923.75.
