Synopsis: The shares of the company surged as the company reported that IHCL ltd. has entered a Sale Purchase Agreement to sell 1.6 crore shares of the company and other discussion of future growth prospects.
The shares of the company engaged in the business of owning, operating & managing hotels, palaces, and resorts under the brand name of “TAJ” are in focus followed by a major restructuring in the promoter holding of the firm.
With the market capitalization of Rs. 2,591.77 crore, TAJ GVK Hotels and Resorts Ltd’s share on Monday made a day high of Rs. 416 per share, up by 9.5 percent from its previous day’s close price of Rs. 379.80 per share. It has delivered a return of 207.69 percent over a period of five years.
What happened
Indian Hotels Company (IHCL) announced the transition of its joint venture with GVK- Bhupal Family in Taj GVK to a long-term management agreement for its portfolio of hotels. Details of the SPA as follows:
The Board of Directors has approved execution of a Sale and Purchase Agreement for the disinvestment of 1,60,00,400 equity shares of par value of Rs. 2 each held by IHCL, representing 25.52% of the shareholding in Taj GVK Hotels & Resorts Ltd (TajGVK), a Joint Venture of the Company.
These shares are proposed to be acquired by Ms. Shalini Bhupal, a member of the promoter group of TajGVK, between December 29 to 31, 2025, at a price of Rs.370 per share below the average traded price of Rs. 411.53(based on weighted market price for a period of 60 trading days) This acquisition will add to GVK group’s share holding, keeping the promoter holding intact at 74.99 percent.
Future growth update, IHCL will continue to manage the currently operational 6 hotels along with the upcoming hotel in Yelahanka, Bengaluru. GVK-Bhupal Family, along with IHCL will jointly evaluate opportunities in the Indian hospitality sector to participate in the sector growth.
Mr. Krishna Bhupal, Joint Managing Director of Taj GVK, added that they have executed a management contract with IHCL in October 2025, for a 256-key Taj in Yelahanka, Bengaluru set to open in 2026 with a further scope of development on the remaining 4-acre land parcel. The company will pursue its growth strategy to scale the hospitality business to an inventory of about 4,000 keys over the next five years.
About the Company
TajGVK Hotels & Resorts Limited, incorporated in 1995, was formed as a joint venture between the Hyderabad-based GVK Group and Indian Hotels Company Limited (IHCL). The Company is engaged in the business of owning, operating & managing hotels, palaces, and resorts under the brand name of “TAJ”
Its Revenue grew by 2 percent to Rs. 107 crore corresponding to the same quarter in the last financial year, whereas Net profit and EPS both grew by 20 percent to Rs. 23.5 crore and Rs. 3.75 per share respectively.
Written by Gourav Pratap Singh
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