A investment subsidiary of Reliance industries has purchased the stakes held by two investment companies owned by Analjit Singh, the promoter of Max India, in East India Hotels enabling India's largest private sector company to overtake ITC as the largest minority shareholder in the premier hotel chain. 

Analjit Singh was at one point believed to have played the role of white knight, as EIH owner PRS Oberoi sought to strengthen his defences against ITC, a cigarette to FMCG major that owns a string of hotels, that was believed to be coveting the hotel chain, widely known as the Oberoi Group. In September 2010, RIL, controlled by billionaire Mukesh Ambani, bought 14.8% stake in a friendly transaction as per an ET report.

The investment arm- Reliance Industries Investment and Holdings - increased its stake in the hotel chain from 14.80% to 18.52% by way of two transactions. ITC, which has asserted that its investment is financial, continues to hold 14.98%. 

Both investors-ITC and RIL - till recently were careful to keep their stakes below 15%, because of the takeover code. 

The new takeover code has enabled RIL to increase its stake above 15%, as the trigger for an open offer is now at 25% from the earlier level of 15%. 

EIH in a filing to BSE, said the shares were bought from the open market through bulk deals on Friday. 

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