ITDC shares soar 17 pc on govt's move to exit 3 hotels

Shares of India Tourism Development Corporation today zoomed nearly 17 per cent after the Centre decided to exit three ITDC hotels including Jaipur Ashok and hand them over to the state governments.
The stock soared 16.43 per cent to settle at Rs 577.45 on BSE. Intra-day, it jumped 19.99 per cent to Rs 595.10.
At NSE, shares of the company surged 16.64 per cent to end at Rs 580.50.
As part of the disinvestment exercise, the Centre today decided to exit three ITDC hotels including Jaipur Ashok and hand them over to the state governments concerned.
The Union Cabinet approved the transfer of Hotel Jaipur Ashok and Lalitha Mahal Palace Hotel, Mysore, to the governments of Rajasthan and Karnataka, Finance Minister Arun Jaitley said.

It also cleared disinvestment of ITDC's 51 per cent equity in Donyi Polo Ashok, Itanagar, in favour of Arunachal Pradesh, he said.
This is as per disinvestment policy of the Government of India wherein ITDC Hotels and properties are to be leased or sub-leased jointly with states, he said.
The policy has been formulated in line with the view that running and managing hotels is not the job of the government or its entities.