Taj GVK slumps after clarification

Taj GVK Hotels hit an intra day high at Rs.147, inching so close to its 52-week high at Rs.148.50. This was before the stock price surged on unconfirmed rumours that the it could be merged into Indian Hotels.

The exchange sought clarification from the company and today morning the company labelled this as completely baseless and speculative news, saying that it had  no such plans  and it categorically denied the news. And after this, the stock price slipped into the red and it is now some 8% down at Rs.135.

The rumour around is that the GVK family wishes to exit the business and Indian Hotels, which currently holds 25.5% stake in Taj GVK is the natural company to takeover. The Reddy family holds 50% stake, holding debt of some Rs.362 crore.