ITC Hotels Ltd. has issued equity shares worth 125.11 crore to its stockholders as part of its ongoing reorganization. An agreement between ITC Ltd. and ITCHL led to the confirmation of the allocation during a Board meeting on January 11, 2025. In accordance with the record date of January 6, 2025, the shares were distributed to ITC Ltd. stockholders. The goal of this action is to demerge and reorganize both businesses as part of the agreement under Sections 230 to 232 of the Companies Act, 2013. After the allocation, ITC Hotels will no longer be a part of ITC Limited; the change will be effective on January 11, 2025.
ITC-ITC Hotels Demerger
The FMCG giant ITC announced plans to split off its hotel business into a distinct business in August 2023. According to the plan, ITC will keep 40% of ITC Hotels and distribute the remaining 60% to ITC shareholders in proportion to their interests.
ITCHL will no longer be a subsidiary of ITC Limited as a result of this allocation, effective January 11, 2025. In the organizational reorganization of ITC Limited and ITCHL, this is a significant event. As part of the demerger, ITC Limited will form an independent entity and divide its hotel operations. Significant shareholder value is expected to be released as a result of the ITC Hotels demerger, enabling the newly formed company to concentrate on growing in the upscale hotel sector.
About the Company – ITC ltd
In 1910, ITC Ltd was established as the Imperial Tobacco Company of India Ltd. The corporation was Indianized throughout time, and it is now called “ITC Ltd.”, where “ITC” is a word in and of itself rather than the letters for Imperial Tobacco corporation. It was once a large tobacco company, as the previous name implies. It began branching out into the hospitality industry in 1975 and then began expanding into other areas, including packaged foods, stationery and education supplies, safety matches and incense sticks, hotels, paperboard and packaging, agribusiness, and information technology.
