ITC Ltd Faces Stock Decline as Clarity on Hotels Business Demerger Remains Pending

According to reports, ITC Ltd has experienced a third consecutive session of falling stocks as uncertainties loom over the proposed demerger of its hotels business. Investors eagerly await clarity on several aspects, including the retention of 40% stake in the new entity, the royalty structure, tax implications, and criteria for strategic investors. Analysts currently value ITC’s hotels business at INR 17,000-24,000 crore, applying a 20% discount to Indian Hotels’ valuations. The proposed demerger is subject to various approvals, and existing shareholders would retain a 60% stake in the new entity. However, ITC’s stock experienced a further decline despite these developments.