India's EIH announces $258 million rights issue

The Indian hotel operator that is part of the Oberoi group offers the shares at a 20.5% discount to Terp after adjusting the announced offer price to Rs66 per share from Rs65.

Luxury hotel operator EIH, the flagship of India’s Oberoi Group, has announced a rights issue with the aim of raising up to Rs11.79 billion $258 million. The Reg-S offering, which is priced at a 20.5% discount to the theoretical ex-rights price Terp, will kick off on March 1.

Rights issues are not that common in India and the latest issue to hit the market was the $263 million offering by integrated rice producer and processing company Rei Agro in July last year. In an Asian context, the EIH deal will also be unusual in that it isn’t underwritten. This means that there is no guarantee that the company will be able to...

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