ITC Hotels demerger to be effective from January 1, 2025 – ET TravelWorld

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 the effective date of the scheme shall be the first day of the following month i.e., January 1, 2025,” it said.

The shareholders of ITC had already approved the 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.

Under the scheme of demerger, ITC Hotels will issue equity shares directly to the shareholders of ITC in a manner that about 60 per cent stake is held directly by ITC shareholders proportionate to their shareholding in ITC and the remaining about 40 per cent stake to continue with ITC, it said. As per the schemes, investments in hospitality entities forming part of the hotel business — 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.

Launched in 1975, ITC Hotels, India’s premier chain of luxury hotels, has over 140 hotels across 90-plus locations. Shares of ITC Ltd settled at INR 469.85 apiece on the BSE, down 0.04 per cent from the previous close.