ITC buys 5.74 mn shares of EIH for Rs42 cr to up stake to 16%

Diversified group ITC Ltd has acquired 5.74 million shares of East India Hotels Ltd (EIH) from HSBC Bank (Mauritius) for around Rs42 crore, raising its stake in the hotels group to around 16 per cent.

The bank sold over 5.74 million shares of EIH to ITC arm Russel Credit Ltd, at Rs73 per share, almost at the same price it bought these shares.

HSBC held 1 per cent stake and this could push ITC's stake in EIH to 15.98 per cent, just below Reliance Industries' 18.53 per cent stake and promoter group's 35.23 per cent stake.

State-run insurance giant LIC holds 6.08 per cent in EIH.

Russell Credit Ltd. is a 100 per cent subsidiary of ITC Ltd. Russell is an investment company engaged in making long-term investments in areas of strategic field, namely FMCG, hotels and tourism, paper, paperboards and packaging agri business and IT.

UK-based HSBC has so far raised an estimated Rs2,800 crore through sale of shares in Yes Bank, Axis Bank and Federal Bank as part of its restructuring operations.