IHCL invests ₹100 cr in ELEL Hotels via rights issue for Taj Bandstand

ELEL Hotels holds the lease for Bandstand land parcel, where IHCL is developing Taj Bandstand, its fifth Taj-branded hotel in Mumbai alongside Taj Lands End

The Indian Hotels Company (IHCL), part of the 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.

 

India’s leading hotels company said in a stock exchange filing that it had 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 per equity share.

 

ELEL Hotels and Investment holds the leasehold rights for the land parcel at Bandstand, Bandra, where IHCL has announced plans to add another hotel under the Taj brand in Mumbai, Taj Bandstand. In February, IHCL said it would invest Rs 2,500 crore in this property, which will be its fifth Taj-branded hotel in Mumbai. Construction of the 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.

 

Ankur Dalwani, executive vice-president and chief financial officer, IHCL, said during the company’s earnings call for the April–June quarter 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.

 

In July, IHCL had acquired 3,30,043 equity shares in its wholly owned subsidiary, ELEL Hotels and Investment, through a rights issue, for Rs 165.02 crore.

 

ELEL Hotels and Investment operates only in the Indian market, which recorded a turnover of Rs 9.74 lakh in the financial year 2024–25, according to the filing.

 

In its annual general meeting this year, 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.