Shares of Taj GVK Hotels & Resorts and Indian Hotels Company have surged up to 20% on the BSE in intra-day trade after a media report suggested that Indian Hotels plans to merge Taj GVK Hotel & Resorts with itself.
Indian Hotels and GVK Reddy family negotiating swap ratio for the merger.
Taj GVK Hotels & Resorts has rallied 20% to Rs 148 on the BSE. Till 12:09 pm, a combined 869,731 shares changed hands on the counter against an average sub 100,000 shares that were traded daily in past two weeks on the BSE and NSE. Indian Hotels Company was up 5% at Rs 139 on the BSE on the back of a two-fold jump in trading volumes.
The BSE said the Exchange has sought clarification from Indian Hotels Company on August 19, 2016, with reference to news flashed on CNBC TV 18 dated August 19, 2016, stating “Indian Hotel to merge Taj GVK with itself. Indian Hotels, GVK Reddy family negotiating swap ratio for merger”
The reply is awaited.
TajGVK Hotels & Resorts Ltd is a joint venture company between Indian Hotels Co Ltd, a Tata group company, and the Hyderabad-based GVK Group.
As of June 30, 2016, Indian Hotels Company held 25.52% stake in Taj GVK Hotels & Resorts, the shareholding pattern data shows.
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Source: Business-Standard
