Hotel major ITC is in talks to buy a minority stake in DB Realty's hospitality business for approximately Rs 700 crore, sources close to the development said.
Shares of DB realty surged over 4 per cent post the news break to hit their 52-week high of Rs 117.
The stock is now trading 3 per cent higher at Rs 114.90. It has hit a low of Rs 112.25 in trade today.
Talks are hovering around the sale of 26 per cent stake in three hotel properties of DB Realty. ITC is in talks to buy DB Realty's two hotel properties in Mumbai and one in Goa.
Earlier in the day, an ET report quoting Nakul Anand, executive director of ITC, said that the company is investing close to $2 billion (Rs 10,683 crore) over the next five to six years to add 5,000 rooms to its hotel portfolio.
"ITC is currently developing 40 new properties across cities like Gurgaon, Hyderabad, Noida, Amritsar, Bhubaneswar, Ahmedabad, Bangalore and Coimbatore," ET reported.