Indian Hotels acquires ₹101 crore worth shares in subsidiary ELEL Hotels via rights issue

Tata Group-owned the Indian Hotels Company Limited (IHCL) on Tuesday (September 23) said it has acquired equity shares worth ₹100.83 crore in its wholly-owned subsidiary, ELEL Hotels and Investment Limited, through a rights issue.

According to a filing with the stock exchanges, IHCL subscribed to 2,01,659 equity shares of ELEL Hotels, each having a face value of ₹10, at an issue price of ₹5,000 per share. The shares were issued for cash at a premium of ₹4,990 per share. The allotment was completed on September 23, 2025.

ELEL Hotels, incorporated on July 9, 1969, holds the leasehold rights for the land parcel at Bandstand, Bandra, where Taj Bandstand is proposed to be developed. The subsidiary operates in the hospitality sector and reported a turnover of ₹0.0974 crore in FY25, ₹0.1769 crore in FY24, and ₹0.1657 crore in FY23.

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IHCL confirmed that the acquisition, being a transaction between a holding company and its wholly-owned subsidiary, does not qualify as a related party transaction under SEBI regulations.

The promoter group does not have any interest in ELEL Hotels. The company noted that the acquisition was undertaken in cash and resulted in IHCL continuing to hold 100% of ELEL Hotels’ equity.

Shares of Indian Hotels Company Ltd ended at ₹752.50, down by ₹17.05, or 2.22%, on the BSE.

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