IHCL Infuses ₹101 Crore into Subsidiary ELEL for Taj Bandstand Project

Indian Hotels Company Limited (IHCL), part of the Tata Group, has strengthened its wholly-owned subsidiary, ELEL Hotels and Investments Limited (ELEL), through a rights issue. The company acquired 2,01,659 equity shares at a face value of ₹10 each, issued at ₹5,000 per share, including a premium of ₹4,990. The aggregate investment amounts to ₹1,00,82,95,000 (₹101 crore approx.), paid in cash. The allotment was completed on September 23, 2025.

Transaction Structure and Related Party Status

Since ELEL is a wholly-owned subsidiary, the transaction does not qualify as a related party transaction under SEBI norms, as the subsidiary’s accounts are consolidated with IHCL. The promoter and group companies hold no independent interest in ELEL, ensuring that the investment is strictly at arm’s length.

Strategic Importance of ELEL

ELEL operates in the hospitality sector and holds the leasehold rights for the Bandstand Bandra land parcel in Mumbai, where the Taj Bandstand project is proposed to be developed. This strategic location in one of Mumbai’s prime waterfront areas strengthens IHCL’s portfolio of luxury hospitality offerings.

Financial Background of ELEL

ELEL was incorporated on July 9, 1969 and currently has operations limited to India. Its turnover has remained modest in recent years, with revenues of ₹0.0974 crore in FY25, ₹0.1769 crore in FY24, and ₹0.1657 crore in FY23. Despite its small-scale operations, ELEL’s asset base and land rights at Bandra make it a critical subsidiary for IHCL’s expansion plans.

Objectives and Impact

The infusion of funds will help ELEL develop the proposed Taj Bandstand, a project expected to enhance IHCL’s luxury hospitality footprint in Mumbai. Additionally, the investment ensures ELEL remains financially equipped to undertake large-scale development in line with IHCL’s growth strategy.

Also Read: IHCL to Open 10 New Hotels in South India in Partnership with Madison!

Conclusion

Through this ₹101 crore rights issue, IHCL has reinforced its commitment to strengthening ELEL and accelerating the Taj Bandstand project. This move aligns with IHCL’s strategy of expanding its luxury hospitality presence in key markets while consolidating its portfolio through wholly-owned subsidiaries.

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