Govt kick-starts process to sell 12.03% in ITDC

Government has kick-started the process of 12.03 percent stake sale in India Tourism Development Corporation (ITDC), which could fetch around Rs 260 crore to the exchequer.

The Department of Investment and Public Asset Management (DIPAM), previously known as Disinvestment Department, has invited bids from merchant bankers to assist the government in the disinvestment process of ITDC, which runs a chain of hotels and restaurants.

"The government is considering divesting 12.03 percent paid-up equity share capital of ITDC out of its shareholding of 87.03 percent in domestic market through offer for sale," said the tender floated by DIPAM.

The merchant bankers have to submit bids to the government by July 21.

Shares of ITDC were trading at Rs 253.50, down 3.87 percent, on BSE. At the current market price, the share sale could fetch about Rs 260 crore to the exchequer.

According to ITDC website, the corporation has a network of eight Ashok Group of Hotels, five JV hotels, 1 restaurant, 11 transport units, 9 duty-free shop at airports and seaports.

ITDC, which came into existence in October 1966, is also managing a hotel at Bharatpur and a restaurant at Kosi on behalf of the Department of Tourism. In addition, it is also managing catering services at Western Court, Vigyan Bhawan and Hyderabad House, New Delhi.

ITDC disinvestment is expected to add to the disinvestment kitty of the government, which plans to mop up Rs 56,500 crore through stake sale in PSUs. Of this, Rs 36,000 crore is expected to come in from minority stake sale in PSUs and another Rs 20,500 crore from strategic stake sale in both profit- and loss-making PSUs.

So far, it has raised about Rs 2,700 crore from stake sale in NHPC and another Rs 240 crore through employee subscription of IOC stake sale.