Indian Hotels gains after offloading most of its stake in Belmond

Indian Hotels Company rose 1.93% to Rs 132 at 13:10 IST on BSE after the company through its overseas arm Samsara Properties sold 5.1% stake in Belmond Limited for $49.5 million.

Meanwhile, the BSE Sensex was up 176.88 points, or 0.65%, to 27,321.79

On BSE, so far 1.23 lakh shares were traded in the counter, compared with average daily volume of 76,564 shares in the past one quarter. The stock hit a high of Rs 135 and a low of Rs 131.55 so far during the day. The stock hit a 52-week high of Rs 137 on 20 June 2016. The stock hit a 52-week low of Rs 80.75 on 7 September 2015. The stock had outperformed the market over the past 30 days till 1 July 2016, rising 4.31% compared with 1.12% rise in the Sensex. The scrip also outperformed the market in past one quarter, gaining 28.98% as against Sensex's 7.42% rise.

The large-cap company has an equity capital of Rs 98.93 crore. Face value per share is Re 1.

The proceeds from the sale of stake in Belmond are being utilized largely for retirement of debt, Indian Hotels Company (IHCL) said in a statement. After the latest stake sale, Samsara Properties holds a minuscule 0.44% of the Class 'A' common shares of Belmond. Samsara Properties is an indirect overseas wholly owned subsidiary of Indian Hotels Company. Belmond is a hotel company and an adventure travel operator. Operated and marketed under the Belmond brand, the company's collection embraces 44 hotel, river cruise and safari and luxury rail businesses in 22 countries.

Based on consolidated financial performance, Indian Hotels Company reported net loss of Rs 51.72 crore in Q4 March 2016 as against net loss of Rs 307.43 crore in Q4 March 2015. Net sales rose 10.94% to Rs 1228.45 crore in Q4 March 2016 over Q4 March 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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