IHCL to merge Oriental Hotels with all-stock share swap, boards approve scheme

The real significance of the IHCL-Oriental Hotels deal is more about tidying up how the hotel business is organized and setting up for future growth, rather than an immediate financial windfall.

Tata Group-owned Indian Hotels Company Ltd (IHCL) has announced plans to merge Oriental Hotels Ltd (OHL) with itself through an all-stock transaction. According to a report by PTI, the boards of both companies have approved the proposed Scheme of Arrangement, with the transaction expected to be completed in the second half of FY2028, subject to regulatory and statutory approvals.Under the proposed scheme, Oriental Hotels shareholders will receive 25 IHCL shares for every 117 shares held in OHL. The appointed date for the merger has been set as April 1, 2027.Mumbai Port Authority Cracks Down On Lease Defaulters; Taj Hotels Among Top Entities Owing ₹3,500 Crore IHCL To Gain Direct Control Of Hotel AssetsOriental Hotels is currently an associate company of IHCL and operates a portfolio of seven hotels comprising 825 rooms. Its assets include Taj Coromandel and Taj Fisherman's Cove Resort & Spa in Chennai, Gateway Coonoor, Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.OHL also has strategic investments in several hotel businesses associated with the IHCL group in India and overseas.IHCL said the transaction is part of its Accelerate 2030 strategy and is aimed at simplifying the group's ownership structure while unlocking the value of Oriental Hotels' portfolio. Merger To Streamline Tata Group's Hospitality BusinessAccording to IHCL, the merger will increase its direct ownership in several entities and result in the creation of two new operating subsidiaries. The company expects the restructuring to simplify governance, reduce overheads and improve operational efficiency.IHCL Managing Director and CEO Puneet Chhatwal said the transaction would help unlock the potential of OHL's portfolio, which includes several prominent Taj properties.Oriental Hotels Managing Director and CEO Pramod Ranjan said the merger would allow OHL shareholders to participate directly in IHCL's future growth.The proposed transaction remains subject to necessary statutory clearances and regulatory approvals.

The Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 OHL shares and is an all-stock transaction

New Delhi: Tata Group-owned Indian Hotels Company Ltd (IHCL) on Monday said Oriental Hotels Ltd will be merged with IHCL through an all-stock transaction.The Boards of Oriental Hotels and IHCL have approved a Scheme of Arrangement to this effect.The Scheme of Arrangement proposes a share swap ratio of 25 IHCL shares for every 117 OHL shares, and aims to complete the transaction in the second half of FY2028.INDIAN HOTELS IN FOCUSAnnounces Merger of Oriental Hotels with CoSwap Ratio:- 25 Shares of IHCL for 117 shares of Oriental Hotels- Ratio Values Oriental Hotels at 8.5% premium vs previous closeFY26 RevenueIHCL: 5640 CrOHL: 500.7 CrCo Says:Amalgamation will create…— Mangalam Maloo (@blitzkreigm) August 24, 2026 "In line with our Accelerate 2030 strategy of creating value, simplifying the group's holding structure and unlocking the full potential of OHL portfolio including iconic assets like Taj Coromandel, Chennai, Taj Fisherman's Cove Resort & Spa, Chennai and Taj Malabar Resort & Spa, Cochin, the Boards of IHCL and OHL have today approved this merger," Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL said.Tata Group-Owned IHCL Announces Opening Of Taj Palace In Lucknow Oriental Hotels is an associate company of IHCL. The company has a portfolio of seven hotels with 825 rooms.This includes freehold assets: Taj Coromandel - Chennai, Taj Fisherman's Cove Resort & Spa - Chennai and Gateway Coonoor, and long-tenure leasehold assets: Taj Malabar Resort & Spa - Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.Additionally, OHL has strategic investments in several IHCL group hotel companies in India and internationally, including St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd."The Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 OHL shares and is an all-stock transaction, with completion targeted in the second half of FY2028 and Appointed Date of April 1, 2027," Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL said.Tata-Owned IHCL Eyes Strategic Acquisitions To Expand Taj Brand In Europe, Southeast Asia Under Asset-Light Model The Scheme is subject to statutory approvals and clearances."The merger will further simplify the group's holding structure by increasing IHCL's direct ownership across several entities, resulting in two new operating subsidiaries. This will streamline governance, optimise overheads, enhance operational efficiency, and support our Accelerate 2030 objectives," Dalwani said.Pramod Ranjan, Managing Director & CEO, Oriental Hotels Ltd, said the merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL's growth journey.Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.

The Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 OHL shares and is an all-stock transaction

IHCL and Oriental Hotels approved a merger, with OHL shareholders set to receive 25 IHCL shares for every 117 shares held.

IHCL owns 37 per cent stake in OHL