Under the proposed scheme of amalgamation, shareholders of Oriental Hotels will receive 25 shares of Indian Hotels for every 117 shares held.
The swap ratio values Oriental Hotels at an 8.5% premium to its previous closing price, according to the companies.
The merger will consolidate Oriental Hotels’ portfolio with Indian Hotels and is expected to create operational and business synergies.
In FY26, Indian Hotels reported revenue of ₹5,640 crore, compared with ₹500.7 crore for Oriental Hotels. Indian Hotels’ net worth stood at ₹12,767 crore, while Oriental Hotels had a net worth of ₹480.5 crore.
Puneet Chhatwal, managing director and chief executive officer of Indian Hotels, said the merger is aligned with the company’s Accelerate 2030 strategy, aimed at creating value, simplifying the group’s holding structure and unlocking the potential of Oriental Hotels’ portfolio.
Oriental Hotels’ portfolio includes Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Taj Malabar Resort & Spa in Kochi.
Chhatwal said the merger will support long-term value creation by leveraging Indian Hotels’ stronger balance sheet for strategic investments, inventory expansion and product enhancements, while further strengthening the premium positioning of the portfolio.
Speaking to CNBC-TV18 earlier, Chhatwal had said that simplification has always been part of the Tata Group’s strategy, adding that the group would seriously evaluate opportunities to simplify its holding structure.
He said consolidation can create greater agility in decision-making, improve performance and make it easier to invest behind a brand when it sits within the same entity.
