Taj GVK Hotels & Resorts Limited has completed the inter-se transfer of shares among its promoter group members, with Ms. Shalini Bhupal acquiring a significant stake from The Indian Hotels Company Limited. The transaction, conducted under SEBI SAST Regulations exemption provisions, represents a strategic restructuring of the company's shareholding pattern while maintaining operational continuity.

Transaction Details and Regulatory Compliance

The inter-se transfer has been executed in accordance with Regulation 10(5) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The transaction was formalized through a Sale and Purchase Agreement dated December 19, with the actual transfer completed on December 30:

Shareholding Pattern Transformation

The completion of this inter-se transfer has resulted in a significant restructuring of the company's ownership pattern. The regulatory disclosure under Regulation 29(2) of SEBI Takeover Regulations reveals the complete shareholding transformation:

Promoter Group Structure

The transaction maintains the overall promoter group shareholding at 74.99%, with other key stakeholders retaining their positions:

Strategic Partnership and Management Continuity

Despite the ownership restructuring, the operational framework of the company remains intact. The partnership between IHCL and the GVK-Bhupal family, spanning over two decades, continues through management arrangements. The company maintains its portfolio of hotels with more than 1,500 keys across landmark locations including Mumbai, Hyderabad, Chennai, and Chandigarh.

The Taj GVK portfolio encompasses premium properties including Taj Krishna Hyderabad, Taj Deccan Hyderabad, Taj Club House Chennai, Taj Chandigarh, and Vivanta Hyderabad Begumpet. The company also maintains interests in Taj Santacruz Mumbai through its joint venture company, Green Woods Palaces and Resorts Private Limited, along with the upcoming Taj in Yelahanka, Bengaluru.

Regulatory Framework and Compliance

The transaction has been structured to comply with all applicable disclosure requirements under Chapter V of the SEBI Takeover Regulations, 2011. The inter-se transfer falls under the exemption category of Regulation 10(1)(a)(ii), which permits transfers among promoter group members without triggering open offer requirements. All conditions specified under the relevant regulations have been duly fulfilled, facilitating the smooth completion of this inter-se transfer among promoter group members.

Taj GVK Hotels & Resorts Limited, a prominent player in the hospitality sector, has received a significant demand notice from the Telangana State Southern Power Distribution Company Limited (TGSPDCL) for wheeling charges. The notice, which pertains to the company's Taj Deccan hotel in Hyderabad, covers a period of nearly a decade and amounts to a substantial sum.

Demand Details

The demand notice from TGSPDCL includes the following key points:

The charges cover the financial years 2004-05 to 2013-14, a period during which Taj GVK Hotels procured electricity from third-party producers, specifically Ind Barath Energies Limited.

Company's Response

Taj GVK Hotels has taken a firm stance on this issue:

1. The company maintains that these wheeling charges should be paid by the third-party electricity producer rather than the recipient.
2. Taj GVK Hotels plans to file an appeal with the Telangana High Court seeking a stay on the recovery of this demand.
3. The company expresses confidence in obtaining a favorable order from the court.

Background and Legal Context

This demand comes in the wake of a recent order by the Telangana High Court. In 2020, Taj GVK Hotels had initially filed a writ petition in the High Court regarding this matter. However, the court recently ruled in favor of TGSPDCL, allowing the collection of wheeling charges from the recipient.

Financial Implications

While the demand is significant, Taj GVK Hotels has stated that there will be no impact on its operations or other activities. The company is actively pursuing legal recourse to address this financial challenge.

Regulatory Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, Taj GVK Hotels has duly informed the Bombay Stock Exchange and the National Stock Exchange of India about this development.

As this situation unfolds, stakeholders and investors will be keenly watching how Taj GVK Hotels navigates this financial and legal challenge, and its potential impact on the company's financial health in the coming quarters.