The Board of ITC, a significant company that sells everything from cigarettes to hotels, approved the plan of arrangement involving the demerger of its hotel division into a separate entity on Monday. For every 10 shares they own in the parent firm, ITC stockholders will receive 1 share in the demerged hotels business.
The indicative timeline in order to list the shares of ITC Hotels in the market is projected to be 15 months. The parent company aims to list the demerged company on BSE and NSE within the timeframe.
The board members of ITC have also approved the buyout of 25% stakes owned by Russell Credit in the Maharaja Heritage properties. The Board members also noted that Hotel companies will be provided with a license to use the ‘ITC’ brand.
ITC shareholders will own roughly 60% of ITC Hotels directly (in proportion to their ownership of ITC); the remaining 40% will remain with ITC.
Rs 2,573.22 crore, or 3.7 percent of the company’s total standalone revenue, was generated by the hotel industry in FY23.
