Wed Jan 01 07:39:02 UTC 2025: ## ITC Shares Surge on Hotels Demerger Completion

**Mumbai, January 2** – Shares of ITC Ltd., the Indian conglomerate, rose nearly 1% to a high of Rs 487.9 on Wednesday, January 1st, following the effective demerger of its hotels business into a separate entity, ITC Hotels (ITCHL). The demerger, sanctioned by the National Company Law Tribunal (NCLT) Kolkata on December 16th, saw ITC transfer all its holdings in various hotel subsidiaries, including Fortune Park Hotels and WelcomHotels (Lanka), to ITCHL.

ITC shareholders will receive one ITC Hotels share for every 10 ITC shares held as of the record date, January 6th. ITC will retain approximately 40% of ITC Hotels’ shares, while the remaining 60% will be distributed directly to ITC shareholders. ITC also transferred Rs 1,500 crore in cash to ITC Hotels to support its growth.

ITC Hotels, with over 140 hotels across 90 destinations, will operate with a zero-debt balance sheet and is expected to pursue strategic acquisitions. A trademark license agreement will allow ITC Hotels to continue using established brands like Bukhara and Dum Pukht.

Market analysts, such as G. Chokkalingam, Founder of Equinomics, express optimism about both ITC and ITC Hotels, citing strong demand for ITC’s cigarette business and a robust outlook for the hotel industry. Investors will be eligible to receive their ITC Hotels shares in the coming days. The stock of ITC will trade ex-date for the spin-off on January 6th. ITC Hotels will apply for its shares to be listed on the stock exchanges after the allotment of shares is completed.

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