Indian Hotels Acquires 100% Equity Shares of ELEL Hotels & Investment

The Indian Hotels Company Limited (IHCL) has successfully completed the acquisition of 100% equity shares in ELEL Hotels & Investment Limited, a wholly-owned subsidiary. This acquisition was made through a rights issue, valued at ₹165.02 crore. The move strengthens IHCL’s foothold in the hospitality sector and is poised to have long-term strategic benefits.

Details of the Acquisition

On July 16, 2025, IHCL acquired 3,30,043 fully paid-up equity shares of ELEL Hotels, with each share having a face value of ₹10 and an issue price of ₹5000. The rights issue, which involved a premium of ₹4,990 per equity share, totals ₹165.02 crore. The shares acquired now give IHCL full control over ELEL, a move that consolidates its position within the hospitality industry.

ELEL Hotels & Investment Limited Overview

ELEL Hotels, founded in 1969, is a wholly-owned subsidiary of IHCL. Its most notable asset is the leasehold rights for a land parcel at Bandstand, Bandra, which is being developed into the Taj Bandstand. While the company has shown minimal turnover in recent years, with FY 2024–2025 revenue of ₹0.0974 crore, its real value lies in the strategic property and development plans under IHCL’s umbrella.

Acquisition Impact on IHCL

The acquisition of ELEL will significantly enhance IHCL’s hospitality offerings. By bringing ELEL into its fold, IHCL secures a prime location for its Taj Bandstand project, which will likely become a high-visibility landmark in Mumbai. Furthermore, IHCL can now fully control the development and management of the project, reinforcing its leadership in the Indian hospitality sector.

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The Indian Hotels Company Share Price Performance

On July 16, 2025, The Indian Hotels Company share price opened at ₹744.05 on NSE, near the previous close of ₹744.05. During the day, it surged to ₹753.00 and dipped to ₹736.20. The stock is trading at ₹750.80 as of 3:28 PM. The stock registered a moderate gain of 0.91%.

Over the past week, it has moved up by 1.00%, over the past month, it has declined by 1.35%, and over the past 3 months, it has declined by 10.57%.

Conclusion

The full acquisition of ELEL Hotels by The Indian Hotels Company represents a strategic expansion in IHCL’s hospitality portfolio. This move aligns with IHCL’s long-term growth plans, enhancing its presence in key locations and increasing its control over critical properties like the Taj Bandstand development.

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