Indian Hotels Company Limited (IHCL) has bolstered its position in the hospitality sector by acquiring additional shares in its wholly-owned subsidiary, ELEL Hotels and Investment Limited (ELEL). The company has invested ₹100.83 crore through a rights issue transaction, further solidifying its control over the subsidiary that holds strategic assets.

Transaction Details

IHCL, known for its Taj brand of hotels, has acquired 2,01,659 equity shares of ELEL Hotels through a rights issue. The shares, with a face value of ₹10 each, were purchased at an issue price of ₹5,000 per share, representing a substantial premium of ₹4,990 per equity share. This strategic move underscores IHCL's commitment to strengthening its portfolio and expanding its presence in prime locations.

Strategic Significance

The acquisition is particularly noteworthy due to ELEL's holdings. According to the disclosure, ELEL possesses leasehold rights for a land parcel at Bandstand, Bandra, where the development of Taj Bandstand is proposed. This prime location in Mumbai's upscale Bandra area could potentially become a significant asset in IHCL's portfolio, enhancing its presence in the luxury hospitality segment.

Financial Implications

The rights issue, totaling ₹100.83 crore, demonstrates IHCL's strong financial commitment to its subsidiary's growth. This investment is expected to provide IHCL with greater control over ELEL's assets and future developments.

Regulatory Compliance

The transaction has been conducted in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. IHCL has duly informed the stock exchanges, maintaining transparency in its corporate actions.

ELEL Hotels and Investment Limited: A Snapshot

ELEL, incorporated on July 9, 1969, has been a wholly-owned subsidiary of IHCL. The company's financial performance over the past three years shows modest turnover:

This rights issue acquisition by IHCL reaffirms its confidence in ELEL's potential, particularly with the proposed development of Taj Bandstand on the leasehold land in Bandra.

As the Indian hospitality sector continues to evolve, IHCL's strategic investments in its subsidiaries like ELEL Hotels and Investment Limited position the company to capitalize on prime real estate opportunities and expand its luxury hotel portfolio.

Indian Hotels Company Limited (IHCL), the parent company of Taj Hotels, has issued a clarification regarding recent media reports about The Pierre hotel in New York City. The company has stated that Taj does not own The Pierre property, addressing speculation that has been circulating in various news outlets.

Ownership and Operations

In a disclosure to the stock exchanges, IHCL provided clarity on its relationship with The Pierre hotel:

• IHCL does not own The Pierre, New York.
• The company holds leasehold rights for the hotel.
• Operations at The Pierre continue as usual.

Response to Media Reports

The clarification comes in the wake of recent media coverage, including an article in the Times of India with the headline "Taj may exit NYC's Pierre in $2bn deal." IHCL has characterized these reports as "misleading and speculative."

Company's Stance on Disclosure

IHCL emphasized its commitment to transparency and regulatory compliance:

• The company adheres to the highest standards of governance and disclosure.
• Any material information requiring disclosure under applicable regulatory requirements will be promptly communicated to the stock exchanges.

Market Impact

This clarification is significant for investors and market watchers who closely follow developments in the hospitality sector. By addressing the rumors directly, IHCL aims to prevent any unwarranted speculation about its international portfolio and strategic direction.

The company's swift response to the media reports demonstrates its proactive approach to investor relations and its commitment to maintaining clear communication with stakeholders.

As the situation unfolds, investors and industry observers will likely continue to monitor any further developments regarding IHCL's international operations and strategic decisions.