M&A

M&A

IHCL to buy balance 40% stake in Ginger hotels owner Roots Corp for Rs.500-Cr

Mint  

Publicly listed Indian Hotels Co Ltd (IHCL) plans to buy the 40% stake it doesn't own in unit Roots Corp Ltd, which runs the Ginger brand of economy hotels, for INR 500 crore. The stake purchase in Mumbai-based Roots Corp is expected to be completed by 31 December, making it a wholly owned subsidiary of IHCL. Established in 2003, Roots operates 55 Ginger hotels across the country and has 26 more under development. The company operates hotels under brands Taj, SeleQtions, Vivanta and Ginger. The IHCL board also approved plans to raise INR 2,000 crore by selling shares to existing investors and another INR 2,000 crore by selling shares to financial institutions, totalling INR 4,000 crore. The money will be used to fund capital expenditure and become a zero-debt company.