ITC will split its hotel business into a new entity. The Competition Commission of India (CCI) has approved ITC Ltd’s splitting of its ITC Hotels business into a separate entity. When the split is complete, the ITC Hotels business will be listed on the Indian stock exchanges.
Post-listing, ITC shareholders will get 1 share in the new hotel company for every 10 shares of ITC. ITC will hold a 40% stake in the hotel company, while ITC shareholders will hold the remaining 60%. The proposal to split the hotel business was approved by ITC’s board in August 2023.
Also Read: ITC Bonus History
ITC Hotels started in 1975 with the inauguration of its first hotel, ITC Hotels is known for its luxury hotels. Now ITC Hotels has a large chain of 115 hotels across India.
“Proxy advisory firms have differing opinions on ITC’s decision to demerge. Some believe that minority shareholders will benefit from the demerger. However, other firms advise investors to vote against the proposed scheme.”
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