ITC acquires stake in EIH and HLV ahead of hotel business demerger

ITC has boosted its shareholding in EIH and HLV by acquiring additional stakes from its wholly-owned subsidiary, Russell Credit. The company purchased 2.44% of EIH’s share capital, which includes 1,52,32,129 equity shares of ₹2 each, and 0.53% of HLV’s share capital, comprising 34,60,829 equity shares of ₹2 each.

Following the acquisition, ITC’s total stake in EIH now stands at 16.13% of its paid-up share capital, while its holding in HLV has increased to 8.11%. EIH, the flagship company of The Oberoi Group, is a key player in the luxury hospitality sector, while HLV is closely associated with The Leela Mumbai.

The move comes as ITC prepares for the demerger of its hotels business. The company has set January 6, 2025, as the record date for this restructuring.

Post-demerger, ITC Hotels Ltd, the new entity, will oversee a portfolio of more than 140 luxury properties under brands such as ITC Hotels, Welcomhotel, and Fortune. Shareholders had overwhelmingly approved the demerger in June 2024.

Meanwhile, ITC shares closed on a positive note on Wednesday, gaining ₹1.70 or 3.60%, to end at ₹471.25 on the NSE.