ITC confirms Hotel listing within 60 days of December 16 order

31 Dec 2024 , 02:26 PM

ITC Ltd, a Kolkata-based multinational conglomerate, stated on Monday (December 30) that ITC Hotels will be listed on stock exchanges within 60 days after obtaining the National Company Law Tribunal (NCLT) order dated December 16, 2024.

The NCLT has approved the demerger of ITC’s hotel operations into ITC Hotels, which will take effect on January 1, 2025. The record date has been fixed at January 6, 2025, for identifying ITC shareholders eligible for allotment of ITC Hotels equity shares.

Under the agreement, existing ITC shareholders will jointly own 100% of ITC Hotels, with about 60% direct ownership and the remaining 40% indirectly through ITC. As part of the demerger all hotel-related properties, assets, staff, and contracts will be transferred to ITC Hotels.

Key intellectual rights, including brands such as Bukhara, Dum Pukht, and Dakshin, will also be transferred to ITC Hotels under a licensing deal with ITC. ITC Hotels is transferring significant assets, including interests in Fortune Park Hotels and Srinivasa Resorts, and ₹1,500 Crore in cash reserves, to support its anticipated growth.

However, the company informed the bourses that ITC will retain financial investments in EIH Ltd and HLV Ltd. Following the allotment, ITC Hotels will apply to the stock markets and SEBI to list its shares, with the procedure expected to be completed within 60 days of receiving the NCLT order, subject to SEBI requirements.

ITC shareholders approved the demerger of its hotels division in June this year, with 99.6% of public institutions and 98.4% of public non-institutions voting in favor of the proposal.

At around 10.14 AM, ITC was trading 0.35% lower at ₹475.35, against the previous close of ₹477 on NSE.

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