ITC Ltd has announced January 1, 2025 as the effective date for the demerger of its hotel business. The move follows the company receiving an approval order from the National Company Law Tribunal (NCLT).
In an exchange filing, ITC confirmed that it received the NCLT’s order on December 16, sanctioning the Scheme of Arrangement for the demerger. The scheme involves separating ITC Limited and ITC Hotels Limited, along with their respective shareholders and creditors, under the Companies Act, 2013. The order was originally issued on October 4, 2024, by the NCLT’s Kolkata Bench.
ITC shares reacted well to the news. At around 12 PM, the stock was trading at Rs 472.30 per share up by 0.47 percent on the NSE.
The demerger originally got the green light from ITC shareholders in June 2024 by an overwhelming majority. About 99.6 percent voted in favor, while about 0.4 percent voted against the plan. The separation is seen as a move to unlock value in ITC’s hotel business.
ITC’s hotel business has been one of the bright spots this year. The segment witnessed record topline and bottom line for Q4 FY24, driven by growth in RevPAR, helped by retail demand, MICE, and marquee events. Revenue for the segment grew 15.6% YoY to ₹2,989 crore while EBITDA jumped 26.2% YoY to ₹1,049 crore.
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Source: Moneycontrol
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