Indian Hotels Company has moved higher by over 6% to Rs 67 on reports that the New Delhi Municipal Council (NDMC) has allowed the Tata Group to run Taj Mahal Hotel, popularly known as Taj Mansingh for up to another year.
NDMC, the property's owner, on Thursday decided to extend the lease with Indian Hotels till October 2013 while reserving the right to find a new operator through an open auction before the extended lease ends, the report suggests.
Meanwhile, Tata Sons, the promoter of the company has increased its stake by acquiring 4.63 million shares of the company for about Rs 29 crore through open market transactions, Indian Hotels said in a filing.
The stock opened at Rs 64.45 and hit a high of Rs 67.10 on the NSE. The trading volumes on the counter surge more than two-fold with a combined 1.93 million shares have changed hands so far on both the exchanges.