IHCL acquires stake in ELEL Hotels via rights issue; shares fall over 2%

ELEL Hotels and Investment Limited owns the leasehold rights for a land parcel at Bandstand Bandra, under which Taj Bandstand is proposed to be developed.

In February, Tata Group-owned IHCL, the country's biggest hospitality player, unveiled the ₹2,500-crore Taj Bandstand project, which will house 330 rooms and 85 apartments spread across two acres.

"The Indian Hotels Company Limited has through a rights issue acquired 2,01,659 equity shares of the face value of ₹10 at issue price of ₹5,000 per share, for cash at premium of ₹4,990 per equity share aggregating to ₹1,00,82,95,000 of ELEL Hotels and Investment Limited, its wholly-owned subsidiary," IHCL said in a regulatory filing.

Earlier in July, IHCL announced it has acquired over 3.3 lakh equity shares through a rights issue in ELEL Hotel and Investment Ltd for over ₹165 crore.

Following the announcement, shares of Indian Hotels Company Limited (IHCL) settled 2.15% lower at ₹752.85 apiece on the NSE, on Tuesday, September 23.

Over the last five trading sessions, The Indian Hotels Company Limited shares declined 4.34%. The scrip is down 4.16% over the past month. On the other hand, the stock traded 10.60% lower for a period of the last six months, while it also fell 13.82% on a year-to-date basis.

The stock touched its 52-week high of ₹894.90 on December 30, 2024 and its 52-week low of ₹645.90 on October 7, 2024. Its market capitalisation stands at ₹1,07,163.10 crore as recorded on September 23.

The Indian Hotels Company Limited Q1 results

For the first quarter of FY26, Indian Hotels Company Limited delivered strong financial performance, with total income rising 32% year-on-year to ₹2,102 crore and net profit (PAT) climbing 19% to ₹296 crore year-on-year.

The hospitality firm also expanded its portfolio by adding six new properties and signing 12 more hotels during the quarter, taking the overall count to over 390 properties. Additionally, the company’s EBITDA came in at ₹637 crore, representing a 29% growth over the previous year.