Leela palaces hotels & resorts Limited has received approval for a substantial investment of ₹231.2 crores in its wholly owned subsidiary, marking a significant capital allocation decision in the hospitality sector. The Capital Investment Committee of the Board of Directors approved this strategic investment on March 16, 2026.

Investment Structure

The investment involves a rights issue by Leela Luxe Hotels & Resorts Private Limited (LLHRPL), with the parent company subscribing to 2.31 crore equity shares. The shares are priced at ₹100 per equity share, which includes a premium of ₹90 per share above the face value of ₹10.

Subsidiary Profile

LLHRPL operates in the hospitality industry and was incorporated on November 28, 2025. As a recently incorporated entity, it does not have historical financial records for the past three years. The subsidiary currently has a paid-up share capital of ₹5,00,000 and operates within India.

Investment Objectives

The capital infusion is intended to support multiple strategic initiatives for LLHRPL, including strategic acquisitions and business development, property expansion and new development projects, refurbishment of existing facilities, capital expenditure requirements, working capital needs, and general corporate purposes.

Regulatory Compliance

While LLHRPL qualifies as a related party under SEBI regulations due to its wholly owned subsidiary status, this transaction is exempted from related party transaction requirements as it involves a rights issue. The investment maintains the existing shareholding structure, with Leela Palaces Hotels & Resorts continuing to hold 100% ownership of LLHRPL. The transaction is expected to be completed in March 2026 and does not require any governmental or regulatory approvals.

Leela Palaces Hotels & Resorts Limited has informed stock exchanges about an income tax assessment order received by its wholly owned subsidiary for Assessment Year 2023-24. The disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Assessment Order Details

Schloss HMA Private Limited (SHPL), the wholly owned subsidiary of Leela Palaces Hotels & Resorts, received the assessment order on February 05, 2026. The order was issued by the Assessment Unit of the Income Tax Department under section 143(3) read with section 144C(3) and section 144B of the Income-tax Act, 1961.

Nature of Assessment

The assessment order addresses transfer pricing adjustments, with the specific adjustment proposed by the transfer pricing officer being considered as a disallowance in the final assessment order. This indicates the order relates to transfer pricing compliance matters for the subsidiary.

Company Response and Impact

Leela Palaces Hotels & Resorts has clarified that there is no material impact on the financial, operational or other activities of the company. SHPL is in the process of filing an appeal before the Commissioner of Income-tax (Appeals) to contest the assessment order.

The company had previously intimated the exchanges about this matter through reference number THELEELA/2025-26/039 dated September 30, 2025, indicating this is a follow-up disclosure regarding the receipt of the final assessment order.

Regulatory Compliance

The disclosure was made in compliance with Part A of Schedule III to the SEBI Listing Regulations and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The information has also been made available on the company's investor website at www.theleela.com/investors .