The Indian Hotels Company Limited has informed the Exchange about Acquisition
INDHOTEL · price
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Indian Hotels Company (Taj Group) has acquired 3,30,043 equity shares of its wholly-owned subsidiary ELEL Hotels and Investment Limited through a rights issue for ₹165.02 crores in cash. The shares were issued at ₹5,000 each (face value ₹10, premium ₹4,990), taking IHCL's holding in ELEL to 100%. ELEL holds the leasehold rights for a land parcel at Bandstand, Bandra, where the Taj Bandstand hotel is proposed to be developed. The subsidiary has negligible turnover (under ₹0.2 crores in each of the last three years) and is purely a project-holding entity. No regulatory approvals were required, and the transaction is exempt from related party rules as it is between a parent and its wholly-owned subsidiary.
This is effectively a capital infusion into an existing wholly-owned subsidiary for the Taj Bandstand project, so it will not change consolidated earnings or ownership structure. The ₹165 crore deployment signals continued investment in expanding the Taj brand portfolio and is broadly neutral to mildly positive for shareholders.