Oriental Hotels Limited to be Amalgamated into The Indian Hotels Company Limited
The Board of Directors of Oriental Hotels Limited (OHL) approved a Scheme of Arrangement for the amalgamation of the company into The Indian Hotels Company Limited (IHCL). The decision, made on August 24, 2026, follows recommendations from the Audit Committee and the Committee of Independent Directors.The Scheme involves the amalgamation of Oriental Hotels Limited into The Indian Hotels Company Limited, executed under the provisions of Sections 230 to 232 of the Companies Act, 2013. The merger is currently subject to the sanction of the relevant bench of the National Company Law Tribunal (NCLT), as well as requisite approvals from shareholders and/or creditors of both companies.
The transaction involves two major hospitality entities. Oriental Hotels Limited is a public limited company engaged in owning, operating, and managing hotels and the hospitality business. The Indian Hotels Company Limited is primarily engaged in owning, operating, and managing hotels, palaces, and resorts.
Key financial details for both companies as of March 31, 2026, are as follows:
| Company | Revenue (INR Crore) | Net Worth (INR Crore) |
|---|---|---|
| Oriental Hotels Limited (OHL) | 500.7 | 480.5 |
| The Indian Hotels Company Limited (IHCL) | 5640.16 | 12766.95 |
Transaction and Rationale
The amalgamation is designed to create synergies and strengthen the business portfolio. Benefits cited by the companies include leveraging the financial resources and management expertise of the combined entity, simplifying the management structure, and achieving cost synergies through the rationalization and standardization of business processes.The Scheme will allow public shareholders of Oriental Hotels Limited to participate in the consolidated hospitality business of IHCL through the consideration shares proposed.
The consideration for the amalgamation will be discharged on an arm's length basis, determined by a joint valuation report dated August 23, 2026. The Share Exchange Ratio stipulates that 25 equity shares in IHCL will be issued for every 117 equity shares held in Oriental Hotels Limited.
Shareholding Change
Prior to the Scheme, The Indian Hotels Company Limited held 37.05% of the equity share capital of Oriental Hotels Limited, both directly and indirectly through its subsidiaries.The shareholding pattern of the Transferor Company (Oriental Hotels Limited) prior to the Scheme, as of June 30, 2026, was as follows:
| Category | No. of Shares | % of Voting Rights |
|---|---|---|
| Promoter & Promoter Group | 12,23,81,465 | 68.52% |
| Public | 5,62,17,715 | 31.48% |
| Total | 17,85,99,180 | 100% |
Following the Scheme, the existing shareholding of IHCL in OHL will be cancelled and extinguished upon the issuance of equity shares. The Transferee Company (IHCL) saw its promoter holding decrease, with the Promoter Group holding 38.12% before the Scheme and 37.50% post-Scheme.
ORIENTHOT Stock Price Movement
Shares of Oriental Hotels Limited are edging higher to ₹142.98 as of 9:13 AM, rising 3.11% in the pre-open session. The equity trades on a volume of 28,665 shares, indicating strong bullish sentiment entering the market open.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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