ITC Hotels demerger approved: Check shares listing timeline, entitlement ratio and other details
ITC Hotels demerger News: Talking about the rationale behind the decision, the company said that the Hotels Business of ITC has matured over the years and is well poised to chart its own growth path.
ITC Hotels demerger News: The board of ITC has approved the demerger of the hotel business into a new entity - ITC Hotels Limited. Once demerged, the new company will be listed on BSE Limited and the National Stock Exchange of India separately. The Board of Directors of the Company has approved the scheme of demerger in a meeting held on Monday, the company said in an exchange filing.
Talking about the rationale behind the decision, the company said that the Hotels Business of ITC has matured over the years and is well poised to chart its own growth path.
"The Hotels Business of ITC has matured over the years and is well poised to chart its own growth path and operate as a separate listed entity in the fast-growing hospitality industry whilst continuing to leverage ITC’s institutional strengths, strong brand equity and goodwill. Therefore, the Scheme is being proposed to segregate Hotels Business from Remaining Business of ITC and demerge it into the Resulting Company," the company said in the filing.
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ITC Hotels Demerger Ratio
The company said that as part of the demerger, for every 10 ordinary shares of ITC Limited having a face value of Re 1, one equity share of ITC Hotels Limited bearing a face value of Re 1 will be issued.
"For every ten ordinary shares of the face and paid-up value of Re 1 each held in the demerged company (ITC Ltd), one equity share of the face and paid-up value of Re 1 in the resulting company (ITC Hotels) will be issued," the company said.
ITC Hotels Share Listing Date
According to the filing, the indicative timeline for listing ITC Hotels is nearly 15 months i.e. probably in November 2024.
It is worth mentioning that the scheme of the demerger is subject to necessary approval from shareholders, creditors, stock exchanges, Sebi, NCLT and others.