ITC sets January 1, 2025 as effective date for demerger of hotel business

Tue Dec 17 08:49:19 UTC 2024: ## ITC Hotels Demerger Set for January 1, 2025

**MUMBAI, Dec 17** – ITC Ltd. announced Tuesday that its hotel business will officially demerge on January 1, 2025, following the National Company Law Tribunal (NCLT)’s approval. The Kolkata bench of the NCLT sanctioned the scheme of arrangement between ITC Ltd. and ITC Hotels Ltd. earlier this October, with the company receiving the certified order on December 16th.

The demerger, overwhelmingly approved by shareholders in June (99.6% of public institutions and 98.4% of public non-institutions), will see ITC retaining a 40% stake in the newly independent ITC Hotels. Existing ITC shareholders will receive one share in ITC Hotels for every ten ITC shares they hold. ITC will charge a nominal royalty fee for brand usage.

This move follows October’s consolidation of ITC’s holdings in Oberoi (EIH Ltd) and Leela (HLV Ltd) hospitality chains, acquiring shares previously held by its subsidiary, Russell Credit Ltd. ITC’s share price reacted positively to the news, rising over 1% to ₹475.00 on the BSE. While the stock is up over 5% in the last six months and 12% year-to-date, it remains approximately 10% below its 52-week high.