Oriental Hotels to merge with IHCL

On August 24, 2026, the Board of Directors at Oriental Hotels Limited (OHL) approved a plan to merge with The Indian Hotels Company Limited (IHCL). This arrangement, in line with the Companies Act of 2013, still requires approval from the National Company Law Tribunal, shareholders, creditors, and regulatory bodies such as the stock exchanges and SEBI. The merger will be carried out on an arm's length basis, despite the fact that IHCL is the promoter of OHL and holds a significant stake in the company.

Under the terms of the Scheme of Arrangement, IHCL will provide 25 equity shares for every 117 shares held in OHL. This exchange ratio is based on a joint valuation report from SSPA & Co. and PwC Business Consulting Services LLP, with fairness opinion from Motilal Oswal Investment Advisors Limited. IHCL owns 37.05% of OHL's equity share capital, directly and indirectly, as of June 30, 2026.

The proposed merger is expected to bring about cost savings and efficiencies by combining OHL's operations in Tamil Nadu, Kerala, and Karnataka with IHCL's financial resources and management expertise. IHCL's strategy for simplifying management and cutting costs aligns with this plan. Following the merger, OHL's promoter and public shareholding will become nil, while IHCL's holding is estimated to decrease to 37.50% and public shareholding to increase to 62.50%, figures that are considered indicative.