Tata Group’s IHCL to Merge Oriental Hotels in All-Stock Deal

Tata Group-owned Indian Hotels Company Ltd (IHCL) will merge Oriental Hotels Ltd (OHL) through an all-stock transaction, subject to regulatory and shareholder approvals. Under the proposed Scheme of Arrangement, OHL shareholders will receive 25 IHCL shares for every 117 OHL shares. The deal is expected to be completed in the second half of FY2028.

The transaction qualifies as a related party transaction under SEBI Listing Regulations. IHCL currently holds 37.05% of OHL’s equity, directly and through its subsidiaries, as of June 30, 2026.

OHL operates seven hotels with 825 rooms, including Taj Coromandel, Taj Fisherman’s Cove Resort & Spa and Gateway Coonoor in Tamil Nadu, along with Taj Malabar Resort & Spa in Kochi, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.

Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL said, “In line with our Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the full potential of OHL portfolio including iconic assets like Taj Coromandel, Chennai, Taj Fisherman’s Cove Resort & Spa, Chennai and Taj Malabar Resort & Spa, Cochin, the Boards of IHCL and OHL have today approved this merger.”

He added, “The merger will drive long-term value creation by leveraging IHCL’s strong balance sheet to support strategic investments, including inventory expansion and product enhancements further strengthening the premium positioning of the portfolio.”

OHL also holds strategic investments in several IHCL group companies in India and overseas, including St. James Court, TAL Hotels and Resorts, Lanka Island Resorts, Taj Madurai and Taj Karnataka Hotels and Resorts.

Commenting on this, Pramod Ranjan, Managing Director & CEO, Oriental Hotels said, “The Company has delivered seventeen consecutive quarters of record performance, achieving fourfold portfolio growth, sustained double-digit increase in revenue and profitability and strong return on capital employed. The merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL’s growth journey.”  

For IHCL, PwC Business Consulting Services LLP acted as the registered valuer, while Kotak Mahindra Capital Company provided the fairness opinion and Cyril Amarchand Mangaldas served as legal counsel. 

“The merger will further simplify the group’s holding structure by increasing IHCL’s direct ownership across several entities, resulting in two new operating subsidiaries,’ added Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL.

For OHL, SSPA & Co. acted as the registered valuer, Motilal Oswal Investment Advisors provided the fairness opinion, and Kochhar & Co. served as legal counsel.