ITC Sets January 1 as Effective Date for Hotel Business Demerger; Stock Rises 3%

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ITC Limited has announced January 1, 2025, as the effective date for the demerger of its hotels business into ITC Hotels Ltd., a wholly owned subsidiary. The move, aimed at unlocking value for shareholders, has been met with positive market sentiment, with ITC’s stock climbing 3% from its intraday low.

The demerger is part of ITC’s strategy to sharpen its focus on core businesses while allowing its hospitality segment to operate independently and pursue growth opportunities. ITC Hotels Ltd. will retain a robust portfolio of properties across luxury, business, and leisure categories, further enhancing its competitive positioning in the hospitality industry.

Market analysts see the demerger as a value-accretive step for shareholders, providing clearer operational focus and better resource allocation for ITC’s diversified segments. Investors are optimistic about the long-term potential of ITC Hotels Ltd. as a standalone entity.

The development aligns with ITC’s broader plan to enhance stakeholder value while driving growth in the hotels business, which has witnessed a strong post-pandemic recovery.

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