This tourism PSU stock surged 43% in three days; here’s the trigger

Shares of the India Tourism Development Corporation Ltd (ITDC) have been on a run, locking in an eight-day winning streak in the previous session on Monday. The buying spree intensified following an April 9 media report highlighting the state-run firm's asset divestment plans.

The stock has surged 43% in just the last three sessions, contributing to a 70% overall gain over the last eight trading days. After surging nearly 20% on Thursday to close at Rs 530.60 on the BSE, the counter is currently hovering at Rs 632.35.

There was an NDTV Profit report dated April 9, suggesting that ITDC has divested three out of four hotel subsidiaries of Ashok Hotel. (Business Today could not independently verify this report).
The report also noted that an Inter-Ministerial Group (IMG) is set to discuss the plan early next week. 

Clarification

Following this, ITDC issued a clarification to the stock exchanges on April 10. The company confirmed that "Hotel units of ITDC and its JV subsidiary units are under the process of disinvestment since 2016. 

However, the management noted that there are no fresh developments beyond what was already disclosed to the bourses back on February 9 alongside their third-quarter financial results.

Addressing the buzz around the NMP 2.0, the company noted, "Union Finance Minister in her budget speech for financial year 2026-27, has announced the NMP 2.0, which also mentions that ITDC Hotels are part of the redevelopment plan through PPP mode." "However, ITDC has not received any directions in this regard from the Govt."

According to ITDC's official Q3 exchange filing:

Ranchi Ashok: ITDC's 51% stake is being transferred to the Jharkhand government, with a settled price of Rs 3.06 crore.

Punjab Ashok: An agreement is in place to transfer ITDC's 51% equity in the Punjab Ashok Hotel Company to Punjab Tourism for an agreed consideration of Rs 79.39 lakh.

Jammu Ashok: Following the expiration of its land lease, the property is being handed back to the J&K government for an agreed compensation of Rs 11.09 crore.

Hotel Ashok (New Delhi): The company is exploring the PPPAC route for the redevelopment of its prime Delhi property, and a structural analysis report from IIT Roorkee has already been received.