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Reliance Ind slips on EIH stake buy

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INDIAShares in Reliance Industries closed 3 percent lower on Tuesday, a day after the company pushed ahead with its diversification plan by acquiring a stake in hotel chain EIH for $217.5 million.

Reliance is already active in petrochemicals, refining, oil and gas, and retail.

Analysts said the deal was likely to thwart designs of EIH’s larger rival ITC, which holds a 14.98 percent stake in EIH, to raise its stake in the hotel chain.

Reliance shares ended lower at 918 rupees, while EIH, which opened 9 percent higher, pared most of its gains and ended 7.1 percent lower at 139 rupees with volumes of 9.1 million shares.

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