In a significant corporate move, ITC Limited announced that the Hon’ble National Company Law Tribunal (NCLT) in Kolkata has sanctioned the demerger of ITC’s Hotels Business into a separate entity, ITC Hotels Limited. This decision, announced on October 4, 2024, marks a strategic shift for ITC, allowing its hotels business to operate independently as a dedicated hospitality entity.
The demerger was approved by ITC’s Board of Directors in August 2023, aiming to capitalize on growth opportunities in India’s burgeoning hospitality sector. With the NCLT’s approval, ITC Hotels Limited is now set to operate as a distinct listed entity, leveraging ITC’s brand equity while focusing on growth within the hospitality industry.
Effective Date: The demerger will be effective on the first day of the month following the filing of the certified NCLT order with the Registrar of Companies.
Scheme Benefits: The separation allows ITC Hotels to chart its own growth in the hospitality industry, leveraging ITC’s brand strength.
Strategic Growth: With a focus on raising capital for future expansion, ITC Hotels is set to attract investors aligned with the hospitality sector.
