Puneet Chhatwal (right) Managing Director and Chief Executive Officer of Indian Hotels Company Limited (IHCL) and Palaniappan Ampa, President and Owner of Ampa group addressing the media. File
| Photo Credit: The Hindu
The Indian Hotels Company Limited (IHCL), India’s largest hospitality company belonging to the Tata Group, has announced that Oriental Hotels Limited (OHL) will be merged with it through a Scheme of Arrangement.
The Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 OHL shares and is an all-stock transaction.
The completion of the merger is targeted in the second half of FY28, and the Appointed Date is April 1, 2027.
Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL said, “In line with our Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the full potential of OHL portfolio including iconic assets like Taj Coromandel, Chennai, Taj Fisherman’s Cove Resort & Spa, Chennai and Taj Malabar Resort & Spa, Cochin, the Boards of IHCL and OHL have today (24, August 2026) approved this merger.”
“The merger will drive long-term value creation by leveraging IHCL’s strong balance sheet to support strategic investments, including inventory expansion and product enhancements further strengthening the premium positioning of the portfolio,” he said.
Oriental Hotels is an associate company of IHCL, and it has a portfolio of seven hotels with 825 rooms.
This includes freehold assets: Taj Coromandel – Chennai, Taj Fisherman’s Cove Resort & Spa – Chennai, and Gateway Coonoor, and long-tenure leasehold assets: Taj Malabar Resort & Spa – Cochin, Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai. Additionally.
OHL has investments in several IHCL group hotel companies in India and internationally 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 & CEO, Oriental Hotels said, “The merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL’s growth journey.”
Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL said, “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,” he added.
Published – August 24, 2026 11:50 am IST
