Right issue of EIH will be open for subscription on March 1 and from then the story will take a new turn. EIH has announced its much awaited right issue price and entitlement ratio on Friday.

EIH has settled issue price at Rs 65 and 11:5 entitlement ratio. It is expected that it will raise Rs 1161 crore through the rights issue.

At present, EIH scrip is floating at Rs 90-93 level and hence pricing of right issue is important for EIH. The issue will be open for subscription on March 1.

Oberoi group, the promoter of EIH had divested 14.12% stake to Reliance Industries (RIL) last year at Rs 184 per share. With this, EIH has two major shareholders ITC and RIL in addition to Oberois.

It is assumed that if everybody will subscribe to the issue then there the holding pattern will remain unchanged. But if it does not happen as assumed then an open offer would be opened to both ITC and RIL.