Rekha Jhunjhunwala-Backed Multibagger Hotel Company Approves Merger with Oriental Hotels; Check Key Details

On Monday, Indian equity benchmark indices traded higher, with the benchmark Nifty 50 index rising 29.60 points (0.12 per cent) to 24,281.60. Amid the market movement, The Indian Hotels Company share price rose 0.15 per cent to Rs 731.10 after the company announced that its Board of Directors had approved a Scheme of Arrangement for the amalgamation of Oriental Hotels Limited with the company.

Indian Hotels Company Approves Merger with Oriental Hotels

The Indian Hotels Company Limited (IHCL) has announced that Oriental Hotels Limited (OHL) will be merged with IHCL through a Scheme of Arrangement. The proposed merger remains subject to statutory approvals and clearances. The Boards of IHCL and OHL approved the merger on August 24, 2026.

According to the company, the merger is aligned with its Accelerate 2030 strategy and is aimed at simplifying the group's holding structure and unlocking the potential of OHL's portfolio. The portfolio includes Taj Coromandel in Chennai, Taj Fisherman's Cove Resort & Spa in Chennai and Taj Malabar Resort & Spa in Cochin.

25:117 Share Exchange Ratio

The proposed merger is an all-stock transaction. Under the Scheme of Arrangement, OHL shareholders will receive 25 IHCL shares for every 117 OHL shares held. The appointed date for the transaction is April 1, 2027, while completion of the merger is targeted for the second half of FY2028.
Also Read - 5 Ways UPI Is Reshaping India's Financial System

The company stated that the merger will further simplify the group's holding structure by increasing IHCL's direct ownership across several entities. The transaction is expected to result in two new operating subsidiaries, with the company stating that this will streamline governance, optimise overheads and enhance operational efficiency.

Oriental Hotels Operates Seven Hotels

Oriental Hotels Limited is an associate company of IHCL and has a portfolio of seven hotels comprising 825 rooms. Its freehold assets include Taj Coromandel in Chennai, Taj Fisherman's Cove Resort & Spa in Chennai and Gateway Coonoor.

Its long-tenure leasehold assets include Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai. OHL also has strategic investments in several IHCL group hotel companies in India and internationally, including St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd.

Merger to Support Strategic Investments

IHCL stated that the merger will enable it to leverage its balance sheet to support strategic investments, including inventory expansion and product enhancements. According to the company, these investments are intended to further strengthen the premium positioning of the portfolio.

Oriental Hotels stated that the merger will allow its shareholders to participate directly in IHCL's growth journey. The company also highlighted that IHCL has delivered seventeen consecutive quarters of record performance, fourfold portfolio growth, sustained double-digit increases in revenue and profitability, and strong return on capital employed.

Transaction Advisors

For IHCL, PwC Business Consulting Services LLP acted as the Registered Valuer, while Kotak Mahindra Capital Company Limited provided the Fairness Opinion and Cyril Amarchand Mangaldas served as legal counsel.

For OHL, SSPA & Co., Chartered Accountants acted as the Registered Valuer, Motilal Oswal Investment Advisors Limited provided the Fairness Opinion, and Kochhar & Co. acted as legal counsel.

Shareholding Pattern

As per the June 2026 shareholding pattern, Rekha Jhunjhunwala held a 1.00 per cent stake in the company. Her holding remained unchanged from the previous quarter, when she also held a 1.00 per cent stake in March 2026.

Further, the promoter holding remained unchanged at 38.12 per cent in June 2026, compared with 38.12 per cent in March 2026.

IHCL's Hotel Portfolio

The Indian Hotels Company Limited and its subsidiaries operate a portfolio of hospitality brands including Taj, Claridges Collection, Brij, Atmantan, SeleQtions, Gateway, Vivanta, Tree of Life and Ginger.

IHCL was incorporated by Jamsetji Tata and opened its first hotel, The Taj Mahal Palace in Bombay, in 1903. As per the company, IHCL has a portfolio of 650 hotels, including 268 hotels in the pipeline, across four continents, 15 countries and more than 300 locations.

Share your thoughts on this development in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.