Shares of Indian Hotels fell 1.33 % on Thursday closing the session at Rs 126.50 on BSE after the Supreme Court allowed the Delhi civic body to e-auction the Mansingh Hotel, which is managed by the Taj Group of Hotels. The stock lost approximately Rs 138.4 crore in market capitalisation. The intra- day low for the stock was Rs 123.80. A total of 11.95 lakh shares of Indian Hotels shares were traded at the counters on the BSE and NSE.
The Supreme Court said that the decision to go for an e-auction cannot be considered arbitrarily. Indian Hotels should be given six months to vacate the premises if it fails to retain the property in the auction, the court said.
For the quarter ended December 2016, Indian Hotels posted a net profit of Rs 92.11 crore against Rs 27.65 crore for the quarter ended September 2016. Located in Delhi, the 11 storey Taj Mansingh hotel has 294 luxury rooms, including 27 deluxe suites. The 5 star hotel in Delhi was opened in 1978. It was the second hotel to be established by Indian Hotel Company Limited after inauguration of the Taj Mahal, Mumbai in 1903.