Oriental Hotels to merge with The Indian Hotels Company Limited

Oriental Hotels Limited (OHL) has announced its amalgamation with The Indian Hotels Company Limited (IHCL) through a Scheme of Arrangement, approved by its Board of Directors on August 24, 2026. This strategic move, recommended by the Audit Committee and the Committee of Independent Directors, is subject to approvals from the National Company Law Tribunal (NCLT), shareholders, creditors, and regulatory bodies including SEBI and the stock exchanges.

The amalgamation is expected to create significant synergies due to the complementary portfolios and similar business operations of both companies. OHL, with its presence in Tamil Nadu, Kerala, and Karnataka, will benefit from IHCL's larger entity status, gaining access to enhanced financial resources, management expertise, and operational efficiencies. The scheme aligns with IHCL's strategy to consolidate its operating entities, leading to a simplified management structure and reduced administrative costs.

Under the approved Scheme of Arrangement, for every 117 equity shares held in OHL, shareholders (excluding IHCL and its subsidiaries) will receive 25 equity shares of IHCL. This ratio is based on a joint valuation report dated August 23, 2026, by SSPA & Co. and PwC Business Consulting Services LLP, with a fairness opinion provided by Motilal Oswal Investment Advisors Limited. As of March 31, 2026, OHL reported a revenue of ₹500.7 crore and a net worth of ₹480.5 crore, while IHCL reported a revenue of ₹5,640.16 crore and a net worth of ₹12,766.95 crore. The transaction is considered a related party transaction as IHCL is a promoter of OHL, holding 37.05% of its equity capital as of June 30, 2026. However, it is structured to not attract Section 188 of the Companies Act.