Oriental Hotels shares rally 6%, IHCL fall; here's why | Merger news
Puneet Chhatwal, MD and CEO, IHCL, said the merger was in line with the company’s Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the potential of OHL’s portfolio.
- Aug 24, 2026,
- Updated Aug 24, 2026 9:38 AM IST
Shares of Oriental Hotels surged 6 per cent in Monday’s trade, while Indian Hotels Company Ltd fell about 1 per cent after the companies announced a merger. India’s largest hospitality company, IHCL, said Oriental Hotels Ltd (OHL) will be merged with IHCL through a Scheme of Arrangement, subject to statutory approvals and clearances.
The scheme of arrangement proposed 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.
Following the development, the Oriental Hotels stock rose 5.66 per cent to hit a high of Rs 146.40 on BSE. IHCL, on the other hand, fell 3.49 per cent to hit a low of Rs 707.80 apiece.
Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said the merger was in line with the company’s Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the potential of OHL’s portfolio, which includes iconic assets such as Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Taj Malabar Resort & Spa in Cochin.
He said the merger would support long-term value creation by leveraging IHCL’s strong balance sheet for strategic investments, including inventory expansion and product enhancements, while further strengthening the premium positioning of the portfolio.
Oriental Hotels is an associate company of IHCL and operates a portfolio of seven hotels with 825 rooms. Its freehold assets include Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Gateway Coonoor. Its long-term leasehold assets include Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.
OHL also has strategic investments in several IHCL group hotel companies in India and overseas, including St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd.
Pramod Ranjan, Managing Director and CEO of Oriental Hotels, said the merger would create significant value for OHL shareholders by enabling them to participate directly in IHCL’s growth journey.
IHCL-Oriental Hotels merger details
Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL said, “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.” He added, “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.
Shares of Oriental Hotels surged 6 per cent in Monday’s trade, while Indian Hotels Company Ltd fell about 1 per cent after the companies announced a merger. India’s largest hospitality company, IHCL, said Oriental Hotels Ltd (OHL) will be merged with IHCL through a Scheme of Arrangement, subject to statutory approvals and clearances.
The scheme of arrangement proposed 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.
Following the development, the Oriental Hotels stock rose 5.66 per cent to hit a high of Rs 146.40 on BSE. IHCL, on the other hand, fell 3.49 per cent to hit a low of Rs 707.80 apiece.
Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said the merger was in line with the company’s Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the potential of OHL’s portfolio, which includes iconic assets such as Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Taj Malabar Resort & Spa in Cochin.
He said the merger would support long-term value creation by leveraging IHCL’s strong balance sheet for strategic investments, including inventory expansion and product enhancements, while further strengthening the premium positioning of the portfolio.
Oriental Hotels is an associate company of IHCL and operates a portfolio of seven hotels with 825 rooms. Its freehold assets include Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Gateway Coonoor. Its long-term leasehold assets include Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.
OHL also has strategic investments in several IHCL group hotel companies in India and overseas, including St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd.
Pramod Ranjan, Managing Director and CEO of Oriental Hotels, said the merger would create significant value for OHL shareholders by enabling them to participate directly in IHCL’s growth journey.
IHCL-Oriental Hotels merger details
Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL said, “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.” He added, “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.