AQI delhi22 min ago
ITC Hotels Demerger: What's the latest update all about?
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
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
1/9ITC 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
2/9ITC 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
3/9The 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?
4/9The 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?
5/9As 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
6/9Hospitality 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
7/9While 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
8/9Launched in 1975, today, ITC's hotels and hospitality business comprises more than 140 hotels spread across 90-plus locations.
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ITC
9/9ITC's hotels business is a premier chain of luxury hotels.
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