ITC Hotels Allots 125.11 Crore Shares to ITC Shareholders, Ceases To Be A Subsidiary
The allotment was confirmed at a Board meeting held on Jan. 11, 2025, following a Scheme of Arrangement between ITC Ltd. and ITCHL.
ITC Hotels Ltd. has allotted 125.11 crore equity shares to its shareholders as part of the ongoing restructuring process. The allotment was confirmed at a Board meeting held on Jan. 11, 2025, following a scheme of arrangement between ITC Ltd. and ITCHL.
The shares were allocated to shareholders of ITC Ltd. as of the record date of Jan. 6, 2025. This move is part of the arrangement under Sections 230 to 232 of the Companies Act, 2013, and is aimed at the demerger and reorganization of both companies. Following the allotment, ITC Hotels will cease to be a subsidiary of ITC Limited, with the change taking effect on Jan. 11, 2025.
As part of the process, ITC Hotels also stated that it will initiate necessary applications to list the newly allotted shares. However, these shares will remain frozen until the listing and trading permissions are granted by the stock exchanges.
The demerger has been structured as part of ITC's strategy to separate its hotels business, with ITC Hotels poised to become India's second-largest hotel chain with a portfolio of 140 hotels and 12,965 keys.
ITC Ltd., a diversified conglomerate, has a strong presence across various sectors, including FMCG, hospitality, paperboards, and packaging. Known for brands like Aashirvaad, Sunfeast, and Classmate, the company has been a key player in India's consumer goods market.
ITC Hotels, the hospitality arm of ITC Limited, has a portfolio of luxury properties across major cities and tourist destinations. The company operates several iconic brands, including ITC Grand Bharat and WelcomHotel, known for their premium offerings in the hospitality sector.
