New Delhi: ITC Hotels demerger date has been fixed on January 1, 2024. The cigarettes to the FMCG conglomerate received the National Company Law Tribunal’s (NCLT) nod for the demerger. ITC’s share price rose 0.13 per cent to Rs 470.70 apiece on Tuesday after it announced the hotel demerger date. ITC Hotels, ITC and their shareholders received the nod from NCLT’s Kolkata bench for their sanctioned scheme of arrangement for the demerger.
ITC’s shareholders approved the hotel business demerger proposal by a majority. Over 99 per cent public institutions gave their nod for the demerger. Over 98 per cent of public non-institutions voted in favour of the proposal.
All about ITC Hotels demerger
ITC Hotels demerger is expected to unlock value for shareholders. ITC is expected to hodl a 40 per cent stake in the hotel giant. ITC shareholders will make up 60 per cent of the new entity’s shareholding. Their holding in the new entity will be proportionate to their stake in ITC. ITC Hotels will pay a nominal royalty fee to the parent company in exchange for using the brand name. ITC shareholders will receive stocks in the ratio 10:1 which means shareholders will receive 1 ITC Hotels stock for every 10 stocks of ITC held by them.
ITC hotel business consolidation
ITC consolidated holdings in hotel chains Oberoi (13.69 per cent) and Leela (758 per cent) in October. The company also plans to acquire all shares held by its wholly owned unit Russel Credit. The latter owns a 2.44 per cent stake in Oberoi and a 0.53 per cent stake in Leela.
ITC share price history
ITC’s share price rose 1.12 per cent in the past 5 days. In the past month, ITC’s shares rose 0.89 per cent. The conglomerate’s stock price was up 9.78 per cent in the past 6 months and 4.22 per cent in the past year, according to NSE data.
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ITC received the NCLT Kolkata bench’s nod for the demerger of ITC Hotels. ITC’s share price inched up to close in green on Tuesday. The cigarette-to-FMCG conglomerate received shareholders’ nod for the demerger of its hotel business earlier this year. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
