ITC Hotels demerger to be effective from January 1, 2025

NEW delhi

ITC on Tuesday said all conditions for the demerger of its hotel business are "fulfilled" and the scheme would be effective from January 1, 2025.

The multi-conglomerate has already received regulatory approvals, including from the National Company Law Tribunal (NCLT) on October 4, sanctioning the scheme between ITC and ITC Hotels.

"ITC Ltd and ITC Hotels Ltd have mutually acknowledged that all the conditions specified in Clause 28 of the Scheme have been fulfilled and satisfied, including filing of the aforesaid order with the Registrar of Companies, West Bengal, and accordingly, the appointed date and effective date of the scheme shall be the first day of the following month i.e., Jan 1, 2025," it said. Shareholders of ITC had already approved demerger of ITC Hotels into a separate entity. This will create a new wholly-owned subsidiary, ITC Hotels Ltd, to handle its hotels and hospitality business.

ITC Hotels will issue equity shares directly to shareholders of ITC in a manner that about 60% stake is held directly by ITC shareholders proportionate to their shareholding in ITC and remaining about 40% stake to continue with ITC.