ITDC gains on signing MoUs with MP, Assam and Rajasthan government

In past four weeks, the stock zoomed 84% as compared to 0.85% rise in the S&P BSE Sensex.

India Tourism Development Corporation (ITDC) is locked in upper circuit of 10% at Rs 736 on BSE in opening deal after the company said Memorandum of Understandings (MoUs) has been entered with Government of Madhya Pradesh (MP), Assam and Rajasthan for transfer of equity stake of the company in the joint venture subsidiary companies/transfer of undertaking to the respective state governments/ state institutions.

“The MOUs with government of Madhya Pradesh for transfer of 51% equity stake of ITDC in MP Ashok Hotel Corporation Limited to the MP State Tourism Development Corporation and with the government of Assam for transfer of 51% equity stake of ITDC in Assam Ashok Hotel Corporation Limited to the Government of Assam,” ITDC said in a BSE filing.

MoUs with the government of Rajasthan for transfer of Hotel Bharatpur Ashok (Hotel Bharatpur Ashok is being managed by ITDC on behalf of Ministry of Tourism, Government of India), it added.

In past four weeks, the stock has outperformed the market by surging 84% from Rs 401 on April 7, as compared to 0.85% rise in the S&P BSE Sensex. It hit a 52-week high of Rs 746 on Monday, April 24, 2017 on BSE in intra-day trade.

At 09:32 am; ITDC was trading 7% higher at Rs 716 on BSE as compared to 0.29% decline in the S&P BSE Sensex. A combined 250,348 shares changed hands on the counter on BSE and NSE so far.