IHCL exits Taj GVK after selling 25.52% stake

The Indian Hotels Company announced on Tuesday that it has sold its entire shareholding in Taj GVK Hotels & Resorts, formally ending its ownership relationship with the company.

In a stock exchange filing, the now former Taj-owners said it has sold 1.6 crore shares, representing a 25.52% stake in Taj GVK, to Shalini Bhupal at a price of Rs 370 per share.

As a result of the exit, the hotel giant will also begin the process of removing the word “Taj” from its corporate name and will adopt a new name.


However, IHCL clarified that it will continue to operate the existing hotels of Taj GVK under the current hotel operating agreements already in place.

Following the sale, a termination agreement was signed between IHCL, Shalini Bhupal, members of the GVK promoter family and the company. As part of this agreement, the long-standing shareholders’ agreement signed in 2011 and the name and trademark licence agreement signed in 2007 have both been cancelled.

Meanwhile, all IHCL-nominated directors on the board of Taj GVK Hotels & Resorts have stepped down with effect from the close of business on Monday.

Earlier this month, IHCL had said it will shift its joint venture with the GVK-Bhupal family in Taj GVK Hotels & Resorts to a long-term management model after agreeing to sell its entire 25.52% stake. The GVK-Bhupal family will remain promoters with 74.99% holding. IHCL said the move supports its capital-light growth plan, while it will continue managing the existing six hotels and an upcoming Bengaluru property.