ITC chairman and managing director Sanjiv Puri indicated that the listing of the hotel business should align with the 15-18 month timeline previously suggested when the demerger was announced. Credit: Jan Claus from Pixabay.

ITC has confirmed that the demerger of its hotel business is progressing as planned and is expected to conclude within the next six months, CNBC-TV18 reported.

The company’s board had initially approved the strategic move in August last year. Under the proposed arrangement, ITC will retain a 40% stake in the new entity, while its shareholders will own the remaining 60% and receive one share of the business for every ten shares they currently own in the company.

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Following the Annual General Meeting (AGM), ITC chairman and managing director Sanjiv Puri addressed the media, providing an update on the demerger process.

He indicated that the listing of the hotel business should align with the 15-18 month timeline previously suggested when the demerger was announced last year.

Based on this schedule, Puri suggested that the hotel business could be listed on the stock exchange by the end of the current year.

Puri further elaborated on the company’s future strategies, emphasising the pursuit of enhanced productivity and the exploration of new revenue streams.

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In response to CNBC-TV18’s question on the listing timeline, Puri said: “We had given 15-18 months if my memory serves me right, and more or less we should be within that kind of timeframe.

“It’s very difficult to put an exact date to it because these are regulatory processes that one has to go through and sometimes there are queries that have to be answered. but I don’t think there’ll be any big departure (from the stated timeline).”

In May this year, the Competition Commission of India granted approval for the demerger of the hotel business of ITC into a separate entity named ‘ITC Hotels’.

ITC is actively conducting several proofs of concept studies and pilot projects, including the introduction of Sleep Boutiques.