IHCL Acquires Full Stake in ELEL Hotels via ₹165 Cr Rights Issue to Develop Taj Bandstand
By Shishta Dutta | Published at: Jul 16, 2025 06:03 PM IST
Mumbai, July 16, 2025 — The Indian Hotels Company Limited (NSE: INDHOTEL, BSE: 500850) has announced the acquisition of 3,30,043 equity shares in ELEL Hotels and Investment Limited, its wholly-owned subsidiary, through a rights issue totalling ₹165.02 crore. The entire project is funded without incurring debt, demonstrating financial flexibility and control through internal funding.
This strategic move strengthens IHCL’s development plans for its upcoming luxury project, Taj Bandstand at Bandra and improves the premium hospitality positioning of the company.
IHCL Stock Performance
IHCL closed at ₹750.65 on July 16, 2025, after trading within a day’s range of ₹736.20–₹753.00. The stock finished the day up ~0.89%. It commands premium valuations (P/E ~56–59×, P/B ~9.5×), enjoys ROE ~19%, along with zero net debt. The stock trades comfortably over the 52-week low (₹571) but is almost 19% lower than the 52-week high (₹894.90)
Acquisition Snapshot
| Particulars | Details |
|---|---|
| Target Entity | ELEL Hotels and Investment Ltd (Wholly-Owned Subsidiary) |
| Mode of Acquisition | Rights Issue |
| Shares Acquired | 3,30,043 equity shares |
| Face Value per Share | ₹10 |
| Issue Price per Share | ₹5,000 |
| Premium per Share | ₹4,990 |
| Total Investment | ₹165.02 crore |
| Shareholding Post-Acquisition | 100% |
| Allotment Date | July 16, 2025 |
Strategic Intent: Taj Bandstand Project
ELEL holds leasehold rights for a land parcel at Bandstand, Bandra, Mumbai — earmarked for the Taj Bandstand luxury development. The investment aligns with IHCL’s long-term strategy to expand its luxury hospitality footprint in Mumbai’s premium coastal zone.
According to the disclosure, this transaction is exempt from being classified as a related party transaction under SEBI norms since it involves a wholly-owned subsidiary whose financials are consolidated with the parent entity.
Financials of ELEL Hotels
| Financial Year | Turnover (₹ crore) |
|---|---|
| FY 2024–25 | 0.0974 |
| FY 2023–24 | 0.1769 |
| FY 2022–23 | 0.1657 |
ELEL was incorporated on July 9, 1969, and operates solely within India. Its primary asset is the leasehold land in Bandra intended for development under IHCL’s Taj brand.
About IHCL
The Indian Hotels Company Limited (IHCL), part of the Tata Group, operates brands like Taj, SeleQtions, Vivanta, and Ginger, with a diversified portfolio of hotels, resorts, and safari lodges across India and overseas. Listed on both NSE and BSE, IHCL continues to be a market leader in India’s hospitality sector.
REF: https://nsearchives.nseindia.com/corporate/bakhtawar_irani_tajhotels_com_16072025150355_Reg30AcquisitionELEL.pdf
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