Royal Orchid Hotels Ltd., the hospitality arm of KGK Group, has recently drawn the attention of the Securities and Exchange Board of India (SEBI) due to its incorporation of Ksheer Sagar Developers Ltd. (KSDPL). This has resulted in SEBI issuing an interim order against the company and several of its key executives.
Royal Orchid Hotels has expressed its confidence that it has a fair and proper defense in this case, and is currently preparing to reply. It has been highlighted that any resulting gains from the SEBI reclassification have been disclosed as exceptional items and are based on legal advice. Moreover, it has been suggested that the business case for Royal Orchid Hotels remains robust and a re-rating can be expected once the issue is solved.
The KGK Group is one of the biggest names in India’s gems and jewelry industry. With more than four decades of experience and expertise, the Group has successfully established a global presence in the gems, jewelry, hospitality and education sectors. It is a parent company to several renowned brands, such as Karp Impex, Royal Orchid Hotels, Ksheer Sagar Developers and Radiant World School. In addition, the Group also has investments in Malaysia, Spain, China, USA, Dubai and Mozambique.
Royal Orchid Hotels Ltd, which comes under the umbrella of the KGK Group, has a portfolio of 35 hotels spread across 10 states in India. It is also the first Indian hospitality service provider to offer lobby and Wi-Fi services throughout its network. Apart from providing hospitality services, the company also offers lifestyle and wellness services, including spa treatments, recreation facilities, restaurant services and wellness programs.
The interim order issued by SEBI against Royal Orchid Hotels is likely to have a major influence on its stock value. As a result, investors should consider all available information before making any financial decisions. The success of Royal Orchid Hotels’ response to the order will be an essential factor in determining the future of the company.