The stock of Mahindra Holidays and Resorts India has rallied 5% to INR263 per share. The surge came after the company announced it had sold off its stakes in Austrian hotel companies MHR Hotel Management and BAH Hotelanlagen AG. The terms of the stake sale were undisclosed, according to Business Standard.

In a Bombay Stock Exchange (BSE) filing, Mahindra Holidays said, "The BAH Hotelanlagen AG, Austria and MHR Hotel Management GmbH, Austria have ceased to be subsidiaries of the company with effect from November 29, 2013 in view of divestment of investment held by the company in the aforementioned subsidiary companies."

Mahindra Holidays added that its present arrangement for room inventory will continue with BAH Hotelanlagen AG. The latter has a hotel property in Innsbruck, Austria, the report said.

The Mahindra Holiday stock opened at INR251 per share and hit a high of INR265 per share on the BSE. Approximately 33,000 combined shares have changed hands on the BSE and National Stock Exchange (NSE) in early morning transactions, Business Standard reported.