The Cabinet Committee on Economic Affairs (CCEA) may decide on offloading part of government’s shares in India Tourism Development Corporation (ITDC) today. The CCEA proposes to divest 5 per cent stake in ITDC. At Wednesday’s closing price of Rs 1,219.10 a share, selling off 42.88 lakh shares of ITDC may fetch over Rs 522 crore. However, the actual realisation will depend upon how much discount is given. Currently, the Government, as promoter, owns 92.11 per cent stake in ITDC.
According to a report, disinvestment will help ITDC meet the norms of minimum public shareholding. The market regulator, the Securities and Exchange Board of India, prescribes that every listed Central Government-owned company must have minimum of 10 per cent public shareholdings. The deadline for meeting this norm is August 8.
At the end of 2012-13 fiscal, the paid-up capital of ITDC stood at Rs 86 crore and earned a net profit of Rs 19 crore. Once the proposal is approved by the CCEA, the Empowered Group of Ministers on Disinvestment would decide the floor price for stake sale in ITDC.
