IHCL Aquires Over Rs 100 Crore Shares In Subsidiary Via Rights Issue For Taj Bandstand

The Indian Hotels Company (IHCL), hospitality arm of Tata Group, said on Tuesday that it had invested over Rs 100 crore in its wholly owned subsidiary, ELEL Hotels and Investment, through a rights issue.

The Mumbai-headquartered company said it has acquired 2,01,659 equity shares of a face value of Rs 10 each at an issue price of Rs 5,000 per share, for cash at a premium of Rs 4,990 apiece.

ELEL Hotels and Investments holds the leasehold rights for a land parcel at Bandstand, Bandra, where IHCL has announced plans to add another hotel under the Taj brand in Mumbai, Taj Bandstand.

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Earlier this year, IHCL said it would invest Rs 2,500 crore in this property, making it the fifth Taj-branded hotel in Mumbai.

Construction of this 330-key, 85-apartment convention centre and commercial complex began earlier this year, and once completed over the next four years, it will stand next to the Taj Lands End.

During the company’s earnings call for the April–June quarter, Executive VP and CFO, IHCL, Ankur Dalwani, said that the company is not looking for an equity partner for Taj Bandstand.

“Issue of 2,01,659 equity shares of face value of Rs 10 each, fully paid up, have been allotted on 23 September 2025 through a rights issue,” the company stated in its filing.

ELEL Hotels and Investment operates only in the domestic market, which recorded a turnover of Rs 9.74 lakh in FY 2024–25, as  per the filing.

In its AGM, IHCL said it had allotted Rs 1,200 crore for capital expenditure, with no immediate fundraising plans. Over the next five years, capital expenditure is expected to be almost $1 billion.

According to its latest analyst presentation, IHCL had 249 operational hotels as of June 2025, with 30 more expected to open in FY26 from its organic pipeline.