Indian Hotels jumps 4% as arm sells stake in Belmond

NEW DELHI: Shares of Indian Hotels jumped over 4 per cent in Monday’s trade after the company said it has sold 5.1 per cent stake in Belmond for a consideration of $49.57 million. The Tata group company said it will utilise the proceeds to retire its debt.

Following the development, the stock surged 4.24 per cent to hit a high of Rs 135 on BSE.

In a regulatory filing to BSE, the company said, “Samsara Properties Limited, the company's indirect overseas wholly owned subsidiary, has sold 5,175,000 class 'A' common shares of the face value of $ 0.01 each of Belmond Limited, representing 5.1 per cent of the total outstanding Class 'A' Common Shares for a net consideration of $ 49.57 million.,”

Post the above sale, Samsara Properties continues to hold 0.44 per cent of the class 'A' common shares of Belmond, the company said, adding “The sale proceeds are being utilised largely for retirement of debt.”

A media report suggested that this is the second such share sale in four months by the Tata group in Bermuda-based Belmond. In February, it liquidated 1.24 per cent stake for $11.96 million (Rs 81.3 crore), it said.