Oriental Hotels Invests USD 1.764 Million in Hong Kong Subsidiary for Debt Repayment
Oriental Hotels Limited plans to invest $1.764 million (₹15.66 crores) in its wholly-owned subsidiary, OHL International (HK) Limited (OIHK), through a rights issue. The investment involves acquiring 63,000 equity shares at $28 per share. The primary purpose is to channel funds through OIHK to St. James Court Hotels Ltd for debt repayment, aiming to improve the group's international financial operations. The transaction is set to complete by November 7, 2025, without altering Oriental Hotels' 100% ownership in OIHK.

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Oriental Hotels Limited , a prominent player in the hospitality sector, has made a strategic move to strengthen its international presence and improve its financial position. The company's Investment Committee has given the green light for a significant investment in its wholly-owned subsidiary, OHL International (HK) Limited (OIHK).
Investment Details
Oriental Hotels will subscribe to a rights issue of OIHK, investing USD 1.764 million (approximately ₹15.66 crores). This investment involves the acquisition of 63,000 equity shares at USD 28 per share, which includes a premium of USD 18 over the face value of USD 10.
Investment Details | Value |
---|---|
Total Investment | USD 1.764 million |
Number of Shares | 63,000 |
Price per Share | USD 28.00 |
Face Value | USD 10.00 |
Premium per Share | USD 18.00 |
Purpose of Investment
The primary objective of this investment is to channel funds through OIHK to St. James Court Hotels Ltd for debt repayment. This move is expected to improve the financial health of the group's international operations.
Subsidiary Performance
OIHK, incorporated on September 8, 1994, operates in the hospitality industry with a presence in Hong Kong. The company has shown fluctuating performance over the past three financial years:
Financial Year | Turnover (USD) | Turnover (₹ Crores) |
---|---|---|
FY2024-2025 | 245,988 | 2.18 |
FY2023-2024 | 506,054 | 4.49 |
FY2022-2023 | 214,816 | 1.91 |
Transaction Timeline and Impact
The transaction is scheduled for completion by November 7, 2025. Importantly, this investment will not alter Oriental Hotels' 100% shareholding in OIHK, maintaining the company's full control over its subsidiary.
Regulatory Compliance
The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No governmental or regulatory approvals are required for this acquisition.
This strategic investment by Oriental Hotels Limited demonstrates the company's commitment to strengthening its international operations and optimizing its financial structure. By channeling funds for debt repayment, the company aims to improve the financial stability of its overseas entities, potentially setting the stage for future growth and expansion in the global hospitality market.
Historical Stock Returns for Oriental Hotels
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.33% | -1.60% | -8.11% | -20.25% | -22.32% | +522.74% |