ITC Unveils Strategic Demerger of Hotel Business

ITC is set to demerge its hotel business, effective January 1, 2025. The new entity, ITC Hotels, will be 100% owned by ITC shareholders, with 60% directly held and 40% through ITC. ITC will transfer Rs 1500 crore to the new entity for growth, maintaining a zero-debt balance.

In a strategic corporate move, ITC announced that its hotel business will be demerged starting January 1, 2025. The record date for shareholders is set for January 6, 2025, marking a significant transition for the Kolkata-based conglomerate.

The demerger will result in ITC Hotels becoming a standalone entity. As per the approved scheme, ITC shareholders listed on January 6 will receive one share of ITC Hotels for every ten shares held in ITC, effectively ensuring they hold 100% of the new entity—60% directly and 40% via ITC.

ITC is set to bolster ITC Hotels financially by transferring Rs 1500 crore to support its growth plans and address contingency requirements. Plans to list shares are underway, with the process expected to complete within 60 days post regulatory approvals.

(With inputs from agencies.)