Reddys to buy out IHCL’s stake in Taj GVK Hotels
MUMBAI: GVK Group chairman GVK Reddy’s daughter Shalini Bhupal is set to buy out Indian Hotels’ 25.5% stake in Taj GVK Hotels & Resorts for Rs 592 crore, making her the company’s largest shareholder. Prior to the deal, Bhupal, who is also the MD of the Hyderabad-based hospitality player, owned just 5,000 shares or 0.01% of Taj GVK. Friday’s development increases Bhupal and GVK Reddy family’s stake in the company to about 75%, while also marking Indian Hotels’ (IHCL’s) exit from ownership. However, Tata Group company IHCL will continue to manage Taj GVK’s portfolio of six hotels, including the iconic Taj Krishna in Hyderabad and Taj Santacruz in Mumbai, under long-term contracts. Bhupal’s son and Taj GVK’s joint MD Krishna Bhupal, said the company plans to increase its inventory to 4,000 keys in the next five years from the current over 1,500 keys.
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The share-sale is part of IHCL’s strategy to grow by managing properties owned by others instead of buying and owning physical real estate themselves. The latest move increases IHCL’s capital light operating inventory to 67%.Bhupal will buy Taj GVK shares from IHCL at Rs 370 each. On Friday, Taj GVK shares closed at Rs 380 on the NSE. Since Taj GVK has been accounted for as a JV in IHCL’s consolidated financials, IHCL’s share of profit from this JV was Rs 29 crore in FY25.
