Viceroy Hotels promoter shareholding has declined to 74.03% from 84.11% following the allotment of shares in a rights issue to public shareholders on September 18, 2026.

The reduction in promoter holding is a result of dilution rather than any disposal of shares by the promoters. Loko Hospitality Private Limited, the promoter entity, did not participate in the rights issue nor did it dispose of any shares during the process.

Shareholding Structure Change

The company allotted 92,03,008 fully paid-up equity shares exclusively to public shareholders. This action was taken to achieve the minimum public shareholding requirement as per SEBI Circular SEBI/HO/CFD/PoD2/P/CIR/2023/18 dated February 3, 2023.

The absolute number of shares held by Loko Hospitality Private Limited remained unchanged at 5,68,42,105. The total equity share capital of the company increased from 6,75,78,948 shares to 7,67,81,956 shares, each with a face value of ₹10.

Regulatory Disclosure

The disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that there was no acquisition or disposal of shares by the promoter group. The change in percentage holding is purely mechanical due to the increase in the total voting capital of the target company.

Ravinder Reddy Konda Reddy, Director of Loko Hospitality Private Limited, signed the intimation letter addressed to the National Stock Exchange and Bombay Stock Exchange.

Viceroy Hotels received a favorable order from the Telangana High Court on September 10, 2026, setting aside a ₹3.56 crore cross-subsidy surcharge demand. The court ruled that the company is entitled to immunity under Section 32A of the Insolvency and Bankruptcy Code following its corporate insolvency resolution.

The dispute originated from a demand notice issued by Southern Power Distribution Company of TS Limited on January 31, 2025. The notice sought payment for FYs 2005-06 to 2014-15 based on earlier regulatory determinations. Viceroy Hotels challenged this in the Telangana High Court via writ petition WP No. 5687 of 2025.

Legal Resolution and Immunity

In its final order dated September 2, 2026, the High Court allowed the company’s writ petition. The court held that the successful completion of the Corporate Insolvency Resolution Process (CIRP) and the subsequent change in management triggered protections under Section 32A of the Insolvency and Bankruptcy Code, 2016.

Consequently, no further action could be taken against the company regarding this specific demand. This decision brings finality to the litigation, which had been pending since the initial demand notice was issued in early 2025.

What the Numbers Show

The set-aside of the ₹3,55,99,834 demand eliminates a potential cash outflow stemming from legacy periods (FYs 2005-06 to 2014-15). Because the court grounded its decision in statutory immunity under the IBC rather than a merit-based review of the electricity charges themselves, the ruling provides a definitive legal shield against similar pre-CIRP claims linked to this specific regulatory notice.

This development follows the conclusion of Viceroy Hotels’ CIRP proceedings in October 2023. The company confirmed there are no expected financial implications or compensation payments arising from this specific litigation closure.