ITC Hotels Announces Its Demerger Effective From 01 January

ITC Hotels Announces Its Demerger Effective From 01 January

Kolkata-based diversified conglomerate ITC Ltd has stated that all approvals of the demerger scheme of the ITC Hotels Ltd will be effective 01 January 2025 after filing the certified copy of the National Company Law Tribunal (NCLT) order with the Registrar of Companies, West Bengal, and fulfilling other conditions. Recently, the Kolkata bench of the NCLT approved the demerger between ITC Limited and ITC Hotels Ltd and the company received a copy of the order.

The company’s filing read, “We inform that ITC Ltd and ITC Hotels Ltd have mutually acknowledged that all conditions specified in Clause 28 of the Scheme have been fulfilled, including filing the order with the Registrar of Companies, West Bengal. Accordingly, the appointed and the effective date of the Scheme shall be 01 January 2025, in accordance with Clauses 5.1(iii) and 5.1(xvi).”

In June, the shareholders approved the demerger, passing the resolution with the requisite majority. In May, the proposal was cleared by the Competition Commission of India (CCI). ITC emphasized that its hotel business had matured, and it was ready to chart its growth path as a separate entity with a focused business approach and optimal capital structure.

The company announced its plans to demerge the hotel business in August 2023 into a separate entity. Under the scheme, ITC will maintain 40 percent ownership of ITC Hotels, with ITC shareholders acquiring the remaining 60 percent in proportion to their stake in the parent entity.