The Ashok hotel valued at Rs 7,409 crore; ITDC freezes in 20% upper circuit

The government has fixed an indicative value for Delhi's iconic 'The Ashok' hotel at Rs 7,409 crore under the national monetisation programme.

Shares of India Tourism Development Corporation (ITDC) were locked in the 20 per cent upper circuit at Rs 404.60 on the BSE on Friday as of 02:19 pm. This came as the government fixed an indicative value for Delhi's 'The Ashok' hotel at Rs 7,409 crore under the national monetisation programme. In comparison, the S&P BSE Sensex was down 0.11 per cent at 62,204.
Till 02:19 pm; a combined 1.92 million equity shares representing 2.23 per cent of total equity of ITDC changed hands on the NSE and BSE. There were pending buy orders for 1,34,425 shares on the NSE and BSE, the exchange data showed. In comparison, the S&P BSE Sensex was down 0.11 per cent at 62,204.

The Ashok and the adjacent hotel Samrat are among the eight IDTC assets listed under the National Monetisation Pipeline (NMP) announced by Finance Minister Nirmala Sitharaman last year.

As per reports, investor consultation has already been undertaken and a cabinet note for the sale of the sprawling 25-acre property in the heart of the national capital is under consideration, said news agency PTI. CLICK HERE FOR FULL REPORT

ITDC is running hotels, restaurants at various places for tourists, besides providing transport facilities. In addition, the company is engaged in production, distribution and sale of tourist publicity literature, providing entertainment, engineering related consultancy services, duty free shopping facilities to tourists, imparting training and education in the field of tourism and hospitality through the Ashok Institute of Hospitality & Tourism Management etc.

The Department of Investment and Public Assets Management (DIPAM) has appointed a transaction advisor for studying lease terms & conditions of land, explore the possibilities of giving 'the Ashok' hotel on operation & management (O&M)/ sub-leasing and optimum utilisation of vacant/ unused land in the hotel Ashok-Samrat complex.

Draft cabinet note for approval of recommendations of IMG and core group of disinvestment (CGD) and conducting roadshows has been sent by MoT for approval.