ITC Hotels Demerger: What's the latest update all about?

Kolkata-headquartered cigarettes-to-hotels conglomerate ITC Ltd on Tuesday announced that a planned demerger of its hotels business into a separate company, ITC Hotels Ltd, will take effect from January 1. The conglomerate ITC on Tuesday said all conditions for the demerger are "fulfilled". Under the proposed demerger, ITC Hotels Ltd will issue equity shares directly to the shareholders of ITC to ensure that about 60 per cent stake is held directly by ITC shareholders in proportion to their shareholding in ITC while the remaining 40 per cent will remain with ITC.

ZeeBiz WebTeam | Jan 27, 2025, 07:06 PM IST

ITC Demerger Update: Cigarettes-to-hotels conglomerate ITC Ltd has announced January 1 as the date on which its proposed demerger with its hotels business into a separate entity, ITC Hotels Ltd, will take effect. Providing an update on the demerger first announced in August 2023, ITC said that all the conditions related to the demerger have been "fulfilled and satisfied". As part of the arrangement, ITC investors will get an about 60 per cent stake in ITC Hotels Ltd proportionate to their shareholding while the remainder 40 per cent ownership will remain with ITC. The proposed demerger will establish ITC Hotels Ltd as a new wholly-owned subsidiary of ITC Ltd.

Images: PTI, itcportal.com, Pexels

 

 

 

 

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ITC Hotels demerger to be effective from January 1: ITC

ITC Hotels demerger to be effective from January 1: ITC

ITC has said that all conditions for the demerger of its hotel business are "fulfilled".

Hence, the proposed demerger will take effect from January 1, according to ITC. 

 

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ITC Hotels Demerger | Regulatory approvals in place, says ITC

ITC Hotels Demerger | Regulatory approvals in place, says ITC

ITC has already received regulatory approvals sanctioning the scheme with ITC Hotels, including one from the National Company Law Tribunal (NCLT) on October 4.

 

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ITC Hotels Demerger

ITC Hotels Demerger

The scheme includes the transfer of investments in certain hospitality entities forming part of the hotel business to ITC Hotels.

These entities are: Bay Islands Hotels, Fortune Park Hotels, Landbase India, Srinivasa Resorts, WelcomHotels Lanka, Gujarat Hotels, International Travel House and Maharaja Heritage Resorts.  

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Will ITC Hotels be a subsidiary of ITC Ltd?

Will ITC Hotels be a subsidiary of ITC Ltd?

The proposed demerger, set to take effect from January 1, will ITC Hotels Ltd, to handle ITC Ltd's hotels and hospitality business.

ITC Hotels will be a wholly-owned subsidiary of ITC Ltd. 

 

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ITC Hotels Demerger | What's in it for investors?

ITC Hotels Demerger | What's in it for investors?

As part of the proposed demerger, ITC Hotels will issue equity shares directly to ITC shareholders in a manner that they hold about 60 per cent directly proportionate to their shareholding in the parent.

The remaining stake of about 40 per cent will continue to be with ITC. 

 

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Booming Hospitality Sector

Booming Hospitality Sector

Hospitality has gathered steam in the country with the easing of pandemic-led disruptions.

 

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ITC hopes to tap rapid growth in domestic hospitality space

ITC hopes to tap rapid growth in domestic hospitality space

While first announcing the demerger, ITC said it expected the country's hospitality industry to clock rapid growth going ahead. 

 

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ITC Hotels

ITC Hotels

Launched in 1975, today, ITC's hotels and hospitality business comprises more than 140 hotels spread across 90-plus locations.

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ITC

ITC

ITC's hotels business is a premier chain of luxury hotels. 

 

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