Punjab Tourism divests holiday home properties

In a major success for the disinvestment story in Punjab, Punjab Tourism Development Corporation (PTDC) has been able to sell its "holiday home" block of properties to an NRI investor based in United Kingdom.

The successful disinvestment in the property is significant because of the loss making history as well as dysfunctional nature of the time-share resorts.

PTDC, which has about 25 properties spread out across the country, had in conjunction with the Hyderabad-based Karvy Investor Services Ltd decided to bunch these properties in blocks, as no single investor would have been able to buy into all the properties together.

UK-based NRI investor Bob Khullar has apparently come out as the successful bidder for the holiday home properties.

The Holiday Home scheme has properties spread in Goa, Manali, Mussorie and Jaipur. The disinvestment process is overseen by a group of secretaries, with the Chief Secretary as the Chairman of the entire.

Speaking to Business Standard, P B Ramanujam, vice president, corporate finance and merchant banking, Karvy, said," We decided to put on block the most difficult properties first. The time share resorts were loss making, had a customer base of about 6000 and accumulated losses of about Rs 1 crore, apart from employee dues of another Rs 1 crore."

Punjab Communications

Meanwhile,the Sebi has okayed the share buyback offer of Punjab Communications Ltd, a Punjab state government enterprise.

The buyback at Rs 90 per share of 40,07,855 equity shares represents 25 per cent of the issued, subscribed and paid-up equity share capital of the company. The buyback would entail a total cost of Rs 37 crore.