The Indian Hotels Company (IHCL), part of the Tata Group, announced on Tuesday that it has invested over Rs 1 billion in its wholly owned subsidiary, ELEL Hotels and Investment, through a rights issue.

In a stock exchange filing, IHCL stated that it acquired 201,659 equity shares of Rs 10 each at an issue price of Rs 5,000 per share, paying a premium of Rs 4,990 per equity share in cash.

ELEL Hotels and Investment holds the leasehold rights for the Bandstand, Bandra land parcel, where IHCL plans to add another Taj-branded hotel in Mumbai, Taj Bandstand. In February, IHCL announced a total investment of Rs 25 billion in this property. The project will feature 330 keys, 85 apartments, a convention centre, and a commercial complex, and construction began earlier this year. Once completed in the next four years, it will be located next to the Taj Lands End.

Ankur Dalwani, Executive Vice-President and CFO of IHCL, said during the April–June earnings call that the company is not seeking an equity partner for Taj Bandstand.

“Issue of 201,659 fully paid-up equity shares of Rs 10 each was allotted on 23 September 2025 through a rights issue,” the filing stated. In July, IHCL had acquired 330,043 equity shares in ELEL Hotels and Investment via a rights issue for Rs 1.65 billion.

ELEL Hotels and Investment operates solely in the Indian market, which recorded a turnover of Rs 974,000 in FY24–25. IHCL’s annual general meeting this year allocated Rs 12 billion for capital expenditure, with no immediate fundraising plans. Over the next five years, capital expenditure is projected to reach nearly $1 billion.