Aditya Birla New Age Hospitality and KA Hospitality’s demerger to combine their premium restaurant businesses has been approved by NCLT.

-KH News Desk (cbedit@imaws.org )

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Mumbai: The Mumbai Bench of the National Company Law Tribunal (NCLT) has officially approved a Composite Scheme of Arrangement between Aditya Birla New Age Hospitality Private Limited (ABNAH) and KA Hospitality Private Limited (KAH), along with their respective shareholders. The approval was granted in an order dated June 18, 2025.

The approved scheme allows for the demerger of ABNAH’s Demerged Undertaking into KAH, aiming to consolidate the hospitality operations of both companies under one umbrella. According to the order, the strategic restructuring is intended to streamline operations and unlock synergies within their hospitality portfolios. ABNAH, the Demerged Company, owns and operates Club Jolies in Worli, Mumbai, and manages a portfolio of premium restaurants through subsidiaries, along with various venture investments. KAH, the Resulting Company, is a well-known operator of high-end dining establishments such as Hakkasan, Yauatcha, CINCIN, and Nara.

The scheme follows ABNAH’s full acquisition of KAH, making it a wholly-owned subsidiary. Given that both entities operate in the same sector, the demerger seeks to integrate resources and optimize efficiency. The key objectives behind the arrangement include:

1. Consolidation and operational enhancement of hospitality businesses.

2. Resource pooling to strengthen business performance.

3. Management rationalization for reduced overheads and improved economies of scale.

4. Greater flexibility in business expansion, funding, and profitability, enhancing KAH’s financial strength.

5. Increased autonomy to explore independent opportunities and attract strategic investors.

The NCLT order noted that there were no objections to the scheme. Consent affidavits were submitted by all stakeholders, including equity and preference shareholders, secured creditors, and debenture holders, thereby dispensing with the need for formal meetings. Notices were also issued to unsecured creditors, and the petitioner companies confirmed that their rights would remain unaffected, with payments proceeding as per the usual course of business.

As part of the demerger, KAH will issue and allot equity shares and Non-Convertible Redeemable Preference Shares (NCRPS) to the shareholders of ABNAH, as outlined in the Tribunal’s order. This strategic move is set to position the unified hospitality business for sustainable growth, increased investor confidence, and long-term operational efficiency.

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