Shares of India Tourism Development Corporation (ITDC) witnessed a significant rally, climbing 43% over the past three trading sessions. This surge intensified after an April 9 media report highlighted the state-run firm's asset divestment plans, contributing to an overall gain of 70% in the last eight trading days.
ITDC Responds to Divestment Reports
Following the media buzz, ITDC issued a clarification to stock exchanges on April 10. The company confirmed that the divestment process for its hotel units and joint venture subsidiary units has been ongoing since 2016. However, management explicitly stated that there are no fresh developments beyond what was already disclosed to the bourses on February 9, alongside their third-quarter financial results.
Details from Q3 Filings on Divestment
According to ITDC's official Q3 exchange filing, several key asset divestment initiatives are in various stages:
- Ranchi Ashok: ITDC's 51% stake is being transferred to the Jharkhand government for a settled price of Rs 3.06 crore.
- Punjab Ashok: An agreement is in place to transfer ITDC's 51% equity in the Punjab Ashok Hotel Company to Punjab Tourism for an agreed consideration of Rs 79.39 lakh.
- Jammu Ashok: Following the expiration of its land lease, the property is being handed back to the Jammu & Kashmir government for an agreed compensation of Rs 11.09 crore.
- Hotel Ashok (New Delhi): The company is exploring the Public-Private Partnership Appraisal Committee (PPPAC) route for the redevelopment of its prime Delhi property. A structural analysis report from IIT Roorkee has already been received for this project.
ITDC also addressed discussions around the National Monetisation Pipeline (NMP) 2.0, noting that the Union Finance Minister's budget speech for FY2026-27 mentioned ITDC Hotels as part of a redevelopment plan through a PPP mode. However, the company clarified that it has not yet received any specific directions from the Government regarding this.