Tata Group's hotel arm, Indian Hotels CompanyBSE -0.26 % (IHCL), has sought the Reserve Bank of India's approval to hive off its international operations into a new company, persons with direct knowledge of the matter said.
IHCL plans to bring all its overseas hotel assets under this step-down holding company, and subsequently raise money by selling up to a 49% stake to foreign investors, the sources, who asked not to be named, said.
IHCL, the largest Indian hotel company, operates over 100 hotels under brands such as Taj and Vivanta across the world.
This is the company's second attempt at getting RBI approval for the proposal. The bank had shot down an earlier plan as the proposed structure had many levels of offshore subsidiaries which the central bank was not comfortable with. Structures of this sort are not permitted under new provisions of the Companies Act. The new law does not allow creation of subsidiaries two levels below the holding company. The sources quoted earlier said the new plan has resolved these issues.
Commis II Indian - Jobs in India
Tata Group's hotel arm, Indian Hotels CompanyBSE -0.26 % (IHCL), has sought the Reserve Bank of India's approval to hive off its international operations into a new company, persons with direct knowledge of the matter said.
IHCL plans to bring all its overseas hotel assets under this step-down holding company, and subsequently raise money by selling up to a 49% stake to foreign investors, the sources, who asked not to be named, said.
IHCL, the largest Indian hotel company, operates over 100 hotels under brands such as Taj and Vivanta across the world.