Tata Group's IHCL To Merge Oriental Hotels In All-Stock Deal; Share Swap Ratio Announced

Tata Group's Indian Hotels Company Ltd (IHCL) has announced plans to merge with Oriental Hotels Ltd (OHL) through an all-stock transaction. The boards of both companies have approved the proposed Scheme of Arrangement, with the deal expected to be finalized by the second half of FY2028, pending regulatory and statutory approvals. In this merger, OHL shareholders will receive 25 IHCL shares for every 117 shares they hold. The merger is set to take effect on April 1, 2027.

OHL operates a portfolio of seven hotels, including Taj Coromandel, Taj Fisherman's Cove Resort & Spa, Gateway Coonoor, Taj Malabar Resort & Spa, Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai. IHCL will gain direct control over OHL's hotel assets, including these properties and strategic investments in other hotel businesses associated with the IHCL group in India and overseas.

IHCL's acquisition of OHL is part of its Accelerate 2030 strategy, aiming to streamline the group's ownership structure and unlock the value of Oriental Hotels' portfolio. The merger will increase IHCL's direct ownership in several entities, creating two new operating subsidiaries. This restructuring is expected to simplify governance, reduce overheads, and improve operational efficiency.

IHCL's Managing Director and CEO, Puneet Chhatwal, stated that the transaction will help unlock OHL's potential, particularly with its prominent Taj properties. OHL's Managing Director and CEO, Pramod Ranjan, emphasized that the merger will enable OHL shareholders to directly participate in IHCL's future growth. The proposed transaction still requires necessary statutory clearances and regulatory approvals.