ITC Hotels Demerger Set to Take Effect on January 1, 2025, Establishing a New Wholly-Owned Subsidiary, ITC Hotels Ltd. The demerger has received approval from both shareholders and regulatory bodies.
New Delhi, Dec 17 (PTI) ITC announced on Tuesday that all prerequisites for the demerger of its hotel division have been “fulfilled,” with the scheme scheduled to take effect on January 1, 2025.
The conglomerate has obtained the necessary regulatory approvals, including a sanction from the National Company Law Tribunal (NCLT) on October 4, which endorsed the arrangement between ITC and ITC Hotels.
“ITC Ltd and ITC Hotels Ltd have confirmed that all conditions outlined in Clause 28 of the Scheme have been met, including the submission of the aforementioned order to the Registrar of Companies in West Bengal. Consequently, the appointed date and the effective date of the scheme will be January 1, 2025,” the company stated.
ITC shareholders have already given their consent for the separation of ITC Hotels into an independent entity.
This initiative will result in the formation of a new wholly-owned subsidiary, ITC Hotels Ltd, dedicated to managing its hotels and hospitality operations.
According to the demerger scheme, ITC Hotels will allocate equity shares directly to ITC shareholders, ensuring that approximately 60 percent of the stake is held directly by them in proportion to their shareholding in ITC, while the remaining 40 percent will remain with ITC.
The scheme also stipulates that investments in various hospitality entities associated with the hotel business—such as Bay Islands Hotels Ltd, Fortune Park Hotels Ltd, Landbase India Ltd, Srinivasa Resorts Ltd, WelcomHotels Lanka Pvt Ltd, Gujarat Hotels Ltd, International Travel House Ltd, and Maharaja Heritage Resorts Ltd—will be transferred to ITC Hotels.
Founded in 1975, ITC Hotels is recognized as India’s leading luxury hotel chain, boasting over 140 hotels across more than 90 locations.
ITC Ltd shares closed at Rs 469.85 each on the BSE, reflecting a decrease of 0.04 percent from the previous closing price.
