HBI Staff | Hyderabad 
The Kolkata bench of the National Company Law Tribunal (NCLT) approved the demerger of ITC’s hotel business on Friday, according to an exchange filing. The demerger will take effect on the first day of the month following the filing of a certified copy of the NCLT order with the Registrar of Companies in West Bengal and after meeting other required conditions, ITC announced. “The company will notify the stock exchanges of the effective date in due course,” ITC added.
ITC had first revealed its plans to separate its hotel business into a standalone entity in August 2023. As part of this demerger, ITC will retain a 40% stake in ITC Hotels, while ITC shareholders will collectively hold the remaining 60%, proportional to their existing ownership in the parent company.
The demerger was already approved by shareholders in June, with the resolution passing by the necessary majority.
The Competition Commission of India (CCI) gave its approval to the demerger proposal in May. ITC has stated that its hotel business has reached a level of maturity, allowing it to pursue its own growth strategy as a separate entity, with a more focused business model and an optimized capital structure.
