Indian Hotels Company and TajGVK Hotels & Resorts rose by 2.88% and 20% respectively at 15:23 IST on BSE on reports that Indian Hotels is in talks to merge TajGVK Hotels & Resorts with itself.
TajGVK Hotels & Resorts was locked at 20% upper circuit at Rs 147.60.
Shares of Indian Hotels Company (IHCL) rose 2.88% at Rs 135.85.
Meanwhile, the S&P BSE Sensex was down 51.22 points or 0.18% at 28,072.22.
IHCL during market hours today, 19 August 2016, issued a clarification with regard to news item suggesting that the company is engaged in merger talks with TajGVK Hotels & Resorts. IHCL said that the news item is an absolutely unfounded one. There are no such plans, it added. Such topic has never ever been touched upon, IHCL said. The matter has been categorically denied to the media, the company said.
TajGVK Hotels & Resorts is a joint venture between IHCL and Hyderabad-based GVK Group. IHCL held 25.52% stake in TajGVK Hotels & Resorts as per the shareholding pattern as on 30 June 2016.
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TajGVK Hotels & Resorts' net profit jumped 4820% to Rs 2.46 crore on 6.1% decline in net sales to Rs 58.34 crore in Q1 June 2016 over Q1 June 2015.
TajGVK Hotels & Resorts is a joint venture, formed through a strategic alliance, between IHCL and the Hyderabad based GVK Group in the year 1999/2000. GVK Group is a Hyderabad based multi product and multi-location business conglomerate with several integrated companies in India and abroad. IHCL is a TATA enterprise with a chain of hotels owning the Taj Group of Hotels and manages and operates various hotels across the country and abroad. The company owns & operates three five star hotels in Hyderabad and one five star hotel each in the cities of Chennai and Chandigarh.
On a consolidated basis, IHCL reported net loss of Rs 169.45 crore in Q1 June 2016, higher than net loss of Rs 72.39 crore in Q1 June 2015. Net sales rose 5.6% to Rs 946.63 crore in Q1 June 2016 over Q1 June 2015.
IHCL and its subsidiaries, collectively known as Taj Group, are engaged in the business of owning, operating & managing hotels, palaces and resorts. IHCL is a Tata Group company.
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