ITC Shares Surge as Demerger Process for Hotel Business Begins

6 Jul 2023 , 01:38 PM

Shares of ITC Ltd experienced a significant rally of over 3%, reaching a 52-week high of Rs 480.60. The surge was triggered by reports indicating that the company has initiated the demerger process for its hotel business.

According to CNBC-TV18, ITC, a conglomerate involved in cigarettes-to-hotels, will explore various structures for its hotel business. One of the options being considered is a separate listing of the hotels business.

In response to queries from CNBC-TV18, ITC stated that it is exploring alternate structures in line with industry dynamics. The news of the demerger process led to a surge of over two percent in ITC’s stock during the trading session.

ITC’s stock has experienced a remarkable 43 % rise year-to-date, making it the top-performing stock on the Nifty 50 index in 2022. On July 5, ITC’s shares closed 1.90 % higher at Rs 474.80 apiece on the BSE, showcasing the positive sentiment among investors.

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