EIH Associated Hotel Hits Record High with First Ever 1:1 Bonus Announcement

When we think of luxurious hotels, one of the names that pop into our mind is Oberoi. EIH Associated Hotels is a part of the Oberoi Group, one of the largest and most eminent hospitality groups in India and Asia. The company owns some of the five-star deluxe and five-star hotels in India.

Stellar Stock Performance

The share price of EIH Associated Hotels on Friday delivered a five-star performance, rising by 7.14% on NSE to Rs 906.15. In 2024, the shares of EIH Associated Hotels rose by 95%, and in the month of June alone, it gained about 25.5%.

Impact of the Bonus Announcement

The rise in the stock price of EIH Associated Hotels can be attributed to the company’s recent announcement. The company declared a 1:1 bonus issue, meaning the board recommended one bonus equity share for every existing share held by shareholders of the company as of the record date. The board has fixed Monday, July 29, 2024, as the record date. The record date for a bonus issue is the cut-off date set by the company to determine which shareholders are eligible to receive the bonus shares. This is the first-ever bonus share issue undertaken by the company as per the data available on the exchanges.

Record-Breaking Trading Volume

On Friday, the price activity was backed by significant volume, with NSE recording 6.38 lakh shares traded. This marks a more than sixfold jump compared to its 30-day average volume of 1.08 lakh shares. The 14-period daily RSI has marked a fresh 4-month high at 75.47.

Check: Hotels Stocks in India

Intraday Highs and Lows

The stock opened at Rs 849 on Friday, which turned out to be the low of the day. The stock rallied sharply from the lows and made an intraday high of Rs 925, the highest level the stock has touched since 2008.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.