EIH Share Price Surge on Rs 421 Crore Investment Plan for Oberoi Luxury Resort in Goa

Tanushree Jaiswal Tanushree Jaiswal 1st April 2024 - 10:01 pm
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On April 1 EIH Limited known for its luxurious service stated that they would add 7% of their fund which is equivalent to Rs. 421 crore to Oberoi Luxury Resort in Goa. EIH is a flagship company owned by the Oberoi group, it provides luxury and service as per the excellence. This new resort is said to be built near Cavelossim Beach in Goa. It would be spread around a 52-acre site featuring 90 luxury rooms and suites. This luxurious Oberoi Resort is projected to be fully operational from 1st October 2027.

Funds of the EIH Limited:

To provide funds for this huge amount of investment the board of directors of EIH Limited has decided to raise the total projected Rs. 421 crore investment by a combination of both internal accrual and debt. This strategic move of the company into the luxurious hotel management business segment for its second project at Oberoi Resort at Bogmalo Beach in South Goa is remarkable.

The company has decided to expand and open a luxury offering in Goa as it is one of the top tourist destinations in India throughout the year. This luxury resort could also result in an important move for EIH Limited as it will build the confidence of the company and fulfill the commitment of recovering in the growth of the hospitality service industry.

Operations of EIH:

EIH currently operates luxurious hotel brands like ‘Oberoi’ and ‘Trident’ in India and abroad for both domestic and international travelers. Due to the focus of the company in the luxurious segment it has gained continuous high net profits. According to a recent financial update the company is said to have gained 52.2% of profit which was equivalent to Rs. 229.94 crore. With the continuous growth of the company, it is optimistic and has projected to gain a 26.41% increase in revenue in the third quarter of FY24 as compared to the third quarter of FY23. This amount is equivalent to Rs. 741.26 crore.

The highest share of the company was on 20 February 2024 when it amounted to Rs. 485.45 reflecting the positive response of the company in the market while its lowest share was on 28 March 2023 at an amount of just Rs. 150.45. Despite this, the company has led to potential growth.

In recent times EIH has gained the trust of its investors with the last closing share of Rs. 448.80 and before it, the company closed an investment of Rs. 439.20. This reflects the continuous growth of EIH Limited gaining the confidence of investors with a prospering future.

To Summarize

In conclusion, EIH Limited is seeing potential in long-term venture of hotel management thus it decided to invest a substantial amount of Rs. 421 crore in the Oberoi Luxury Resort in Goa for 90 luxurious rooms and suites fully operating from 1 October 2027.

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