The announcement was made after trading hours on Wednesday, 28 March 2012.

Meanwhile, the BSE Sensex was down 129.80 points, or 0.76%, to 16,991.82.

On BSE, 311 shares were traded in the counter as against an average daily volume of 7,193 shares in the past one quarter.

The stock hit a high of Rs 158.35 and a low of Rs 157 so far during the day. The stock had hit a 52-week high of Rs 218.55 on 2 August 2011. The stock had hit a 52-week low of Rs 124 on 23 June 2011.

The stock had outperformed the market over the past one month until 28 March 2012, rising 6.43% compared with the Sensex's 3.44% fall. The scrip had also outperformed the market in past one quarter, gaining 11.54% as against 8.86% rise in the Sensex.

The small-cap company has an equity capital of Rs 19.59 crore. Face value per share is Rs 10.

Shares of EIH Associated Hotels extended recent fall. The stock has fallen 4.30% in the preceding three sessions from a recent high of Rs 164.05 on 26 March 2012, on equity dilution worries. If one assumes that the rights issue is priced at the ruling market price, it will result in an equity dilution of 35.77%.

EIH Associated Hotels said its board also approved amalgamation of company's wholly-owned subsidiary, Island Hotel Maharaj, with the company.

EIH Associated Hotels' net profit rose 0.7% to Rs 10.03 crore on 5.3% growth in net sales to Rs 58.95 crore in Q3 December 2011 over Q3 December 2010.

EIH Associated Hotels operates a total of nine five star deluxe and five star hotels in metropolitan and major tourist destinations throughout India. EIH Associated Hotels is an associate company of EIH -- the flagship company of The Oberoi Group, one of the largest hospitality groups in India. Founded in 1934, The Oberoi Group operates 28 hotels and three cruisers in five countries under the luxury 'Oberoi' and five-star 'Trident' brands.