Indian Hotels and Taj GVK Hotels and & Resorts Ltd shares surged on Friday after media reports said that it is planning to merge Taj GVK Hotel & Resorts with itself as the GVK Reddy family wishes to exit the business. Indian Hotels, which currently holds around 25.5 per cent in Taj GVK and Reddy family which holds about 50 per cent stake, are in process of negotiating swap ratio for the merger. Taj GVK, which has debt of roughly Rs 362 crore on its books, will cease to exist as separate listed entity if the merger goes through.
The Bombay Stock Exchange has sought a clarification from Indian Hotels Company with reference to news report. A reply from the company in this regard is awaited.
Indian Hotels scrip settled 2.42 per cent up at Rs 135.25, while Taj GVK Hotels and & Resorts Ltd ended the day 20 per cent up at Rs 147.60.
The BSE group ‘A’ stock of face value Rs 1 has touched a 52-week-high of Rs 143.00 on Jul 14, 2016 and a 52-week-low of Rs 80.75 on Sep 7, 2015.
The promoters holding in the company stood at 38.65 per cent, while Institutions and Non-Institutions held 39.86 per cent and 21.48 per cent respectively.
Indian Hotels company and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and recognized as one of Asia’s largest and finest hotel company. It operates in the luxury, premium, mid-market and value segments of the market.