Indian Hotels gain after Tata Sons acquire stake from promoter entities

The stock was up 5% to Rs 137 on BSE in intra-day trade after Tata Sons acquired more than 6% stake in the company from three promoter entities as part of restructuring the investment portfolio

Indian Hotels Company was up 5% to Rs 137 on BSE in intra-day trade after Tata Sons acquired more than 6% stake in the company from three promoter entities as part of restructuring the investment portfolio.

Till 10:40 am; about 79.12 million equity shares representing 6.6% of total equity of Indian Hotels have changed hands on the BSE, the exchange data shows.

Tata Sons, the promoter of the company, will acquire upto 6.64% stake Sir Dorabji Tata Trust, Lady Tata Memorial Trust and Sir Ratan Tata Trust, Indian Hotels had said in a regulatory filing on March 6, 2018.

The shares are proposed to be acquired on or after March 13, 2018 and at or around the prevailing price on date of proposed acquisition, it added.

The acquisition price would not be higher by more than 25% of the weighted average market price of Rs 136.36 per share. The rationale of the proposed transfer is "restructuring of the investment portfolio”, the company said.

As of December 31, 2017, Sir Dorabji Tata Trust (4.22% or 50.2 million shares), Lady Tata Memorial Trust (1.49% or 17.73 million shares) and Sir Ratan Tata Trust (0.93% or 11.02 million shares) were collectively held 6.64% or 78.97 million shares in Indian Hotels, the shareholding pattern data shows.