Oriental Hotels surges on getting nod to merge with The Indian Hotels Company
Oriental Hotels is currently trading at Rs. 141.35, up by 2.80 points or 2.02% from its previous closing of Rs. 138.55 on the BSE.
The scrip opened at Rs. 142.50 and has touched a high and low of Rs. 146.40 and Rs. 138.70 respectively. So far 219661 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 149.50 on 10-Sep-2025 and a 52 week low of Rs. 80.50 on 16-Mar-2026.
Last one week high and low of the scrip stood at Rs. 146.40 and Rs. 120.00 respectively. The current market cap of the company is Rs. 2537.89 crore.
The promoters holding in the company stood at 68.52%, while Institutions and Non-Institutions held 1.52% and 29.96% respectively.
Oriental Hotels has secured approval for the amalgamation of the company into and with the Indian Hotels Company (IHCL) through a Scheme of Arrangement between the company, IHCL, and their respective shareholders. The Board of Directors of the company, at its meeting held on August 24, 2026, has approved the same. IHCL is a promoter of the company and holds 37.05% of the equity share capital of the company as on June 30, 2026. The Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 shares of the company and is an all-stock transaction, with completion targeted in the second half of FY2028 and Appointed Date of April 1, 2027.
The Amalgamation will create synergies amongst the businesses as both companies are engaged in similar businesses and have complementary portfolios, with the company having significant presence in the states of Tamil Nadu, Kerala and Karnataka. The scheme shall enable the business of the company to have access to the financial resources, management experience and expertise of IHCL, and shall facilitate operational and cost synergies, asset management opportunities, rationalization, standardisation and simplification of business processes.
The Scheme is in consonance with the strategy of the IHCL to reduce the number of operating entities under its holding, which in turn will lead to elimination of duplication, simpler management structure, better administration, rationalisation of administrative expenses, etc, consequently reducing costs of maintaining separate entities. The Scheme will provide the public shareholders of the company with an opportunity to participate directly in the consolidated hospitality business of the IHCL.
