ITC's Hotel Business Set for January 2025 Demerger

ITC has fulfilled all conditions for the demerger of its hotel business, effective from January 1, 2025. The demerger will create ITC Hotels Ltd as a separate entity, with ITC shareholders receiving a direct equity stake. Regulatory approvals have been secured, including from the NCLT.

ITC announced on Tuesday that all prerequisites for the demerger of its hotel business have been met, setting the stage for the scheme to take effect on January 1, 2025.

The conglomerate has secured necessary regulatory approvals, notably from the National Company Law Tribunal as of October 4, endorsing the arrangement between ITC and ITC Hotels.

Under the demerger, ITC Hotels will issue equity shares, ensuring ITC shareholders hold 60% of the new entity, with the remaining 40% staying with ITC. This change will consolidate ITC's hospitality investments under ITC Hotels Ltd.

(With inputs from agencies.)