IHCL Acquires ₹100.83 Crore Stake in Subsidiary ELEL Hotels via Rights Issue

24 Sep 2025 , 09:50 AM

Tata Group’s Indian Hotels Company Limited (IHCL) has completed the acquisition of equity shares worth ₹100.83 crore in its wholly-owned subsidiary, ELEL Hotels and Investment Limited, through a rights issue.

The company subscribed to 2,01,659 equity shares, each with a face value of ₹10, at an issue price of ₹5,000 per share, carrying a premium of ₹4,990. The allotment of shares was finalized on September 23, 2025, as per filings with the stock exchanges.

ELEL Hotels, incorporated in July 1969, holds the leasehold rights for a land parcel at Bandstand, Bandra, the proposed site for the Taj Bandstand development. The subsidiary’s revenue has remained modest, with ₹0.0974 crore in FY25, ₹0.1769 crore in FY24, and ₹0.1657 crore in FY23, reflecting its focused operational scope in the hospitality sector.

IHCL emphasized that, as this transaction occurred between a parent company and its wholly-owned subsidiary, it does not fall under SEBI’s related-party transaction norms. The promoter group has no ownership in ELEL Hotels, and the cash-based transaction ensures that IHCL retains full ownership of the subsidiary.

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