Taj GVK Hotels & Resorts Limited has officially confirmed the completion of The Indian Hotels Company Limited's exit from the company through the sale of its entire 25.52% stake for ₹592.00 crores. The transaction was executed through a Share Purchase Agreement on December 30, with comprehensive regulatory filings submitted to BSE and NSE under SEBI regulations.

Official Regulatory Disclosure

In a formal disclosure to stock exchanges, Taj GVK Hotels confirmed that promoter group entity IHCL sold 1,60,00,400 equity shares representing 25.52% stake through the Share Purchase Agreement. The company filed the disclosure under provisions of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 and SEBI (Prohibition of Insider Trading) Regulations, 2015. The transaction was consummated with buyer Shalini Bhupal, who is not a member of IHCL's promoter group.

Comprehensive Agreement Terminations

Following the share sale completion, multiple agreements were terminated between parties including G Indira Krishna Reddy, Shalini Bhupal, Blue Moon Trust, Moonshot Trust, Starlight Trust, IHCL, and Taj GVK Hotels. This resulted in the cancellation of the Restated and Amended Shareholders' Agreement dated November 4, 2011, and the Name and Trademark License Agreement dated November 22, 2007.

Board Restructuring and Director Changes

Consequent to the agreement terminations, IHCL's nominee directors stepped down from the Taj GVK board with effect from close of business hours on December 30. Mr. Prabhat Verma (DIN: 06548864) and Mr. Nabakumar Shame (DIN: 03605594) resigned from their positions as Non-Executive Non-Independent Directors, as confirmed in the regulatory filing.

Operational Continuity and Financial Impact

Despite the complete divestment, IHCL will continue operating the existing hotel portfolio under respective Hotel Operating Agreements. The company retains operational management rights and will continue receiving management fees. In the previous financial year, IHCL received ₹25.32 crores as management fees from Taj GVK Hotels, representing 0.30% of IHCL's revenue, while IHCL's share of profit from the joint venture was ₹29.09 crores.

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.