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The demerger of ITC’s hotels business into ITC Hotels, sanctioned by the NCLT, is set to take effect on January 1, 2025. January 6, 2025, has been fixed as the record date to identify ITC shareholders eligible for allotment of ITC Hotels equity shares.
Under the arrangement, existing ITC shareholders will collectively hold 100% of ITC Hotels, comprising approximately 60% direct ownership and the remaining 40% indirectly through ITC. The demerger involves the transfer of all properties, assets, employees, and contracts associated with the hotel business to ITC Hotels.
Also Read: ITC acquires stake in EIH and HLV ahead of hotel business demerger
Key intellectual properties, including trademarks such as Bukhara, Dum Pukht, and Dakshin, will also transition to ITC Hotels under a licensing agreement with ITC. Notable assets, including investments in hospitality entities like Fortune Park Hotels and Srinivasa Resorts, as well as ₹1,500 crore in cash reserves, are being transferred to ITC Hotels to support planned growth.
However, financial investments in EIH Ltd and HLV Ltd will remain with ITC. Following the allotment, ITC Hotels will apply to the stock exchanges and SEBI to list its shares, with the process expected to be completed within 60 days of the NCLT order receipt, adhering to SEBI regulations.
Shareholders of ITC had approved the demerger of its hotels business in June this year with 99.6% of public institutions and 98.4% of public non-institutions casting votes in approval of the proposal.
Shares of ITC Ltd ended at ₹477.10, down by ₹1.80, or 0.38%, on the BSE.
Also Read: ITC Cigarette Tax — The three potential scenarios to keep in mind
(Edited by : Shoma Bhattacharjee)
