Reliance Mutual Fund has hiked stake in Tatas-run Indian Hotels to nearly 8 per cent, making the hospitality sector another key area with significant investments by the two Ambani groups.
Elder Ambani sibling Mukesh-led Reliance Industries group is already a major investor in EIH ltd, the main listed entity from Oberoi group that runs a chain of luxury hotels.
While RIl group firm Reliance Industrial Investments And Holdings ltd owns a 18.53 per cent stake in EIH ltd, a small 2.12 per cent stake is also held in the company as a financial investment by Reliance Mutual Fund, which is part of younger Ambani sibling Anil-led Reliance Group.
Expanding its exposure to the hospitality sector, Reliance MF has now increased stake in Indian Hotels Company to 8 per cent through multiple share purchases over the recent months, sources close to the fund house said.
As per the latest available shareholding pattern of Indian Hotels on the BSE website, Reliance MF held 5.42 per cent stake in the company through two separate funds as on September 30, 2015. The total stake of the fund house has now reached near 8 per cent which is a financial investment made by a mutual fund, sources added.
Other major investors in the company include lIC, Franklin Templeton, as also multiple insurers such as General Insurance Corporation of India, New India Assurance and ICICI Prudential life Insurance.
lIC, New India Assurance and General Insurance Corporation Of India also figure among the major shareholders in EIH ltd, where Reliance Industries group had acquired stake a few years ago as a ‘white knight’ or a ‘friendly investor’ to the promoters to thwart a takeover bid from rival ITC ltd.