Indian conglomerate ITC has completed the demerger of its hotels business into a new entity, ITC Hotels Limited (ITCHL), effective 1 January 2025.
The record date for shareholders is set for 6 January 2025.
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Under the demerger scheme, ITC shareholders as of 6 January will receive one share of ITC Hotels for every ten ITC shares.
The scheme of arrangement was approved by the Kolkata bench of the National Company Law Tribunal on 16 December last year.
An ITC release said that following the demerger, ITC Hotels will issue equity shares directly to ITC shareholders so that they directly hold a 60% stake in proportion to their shareholding in the company. The remaining 40% stake will be retained by ITC.
ITC Hotels will include entities such as Bay Islands Hotels, Landbase India, WelcomHotels (Lanka), and Fortune Park Hotels as wholly owned subsidiaries.
Srinivasa Resorts will be a majority-owned subsidiary with ITC Hotels owning a 68% stake.
International Travel House and Gujarat Hotels will serve as associates with ITC Hotels holding less than 50% of their stakes while Maharaja Heritage Resorts will be a joint venture with a 50% interest.
Financial investments in Oberoi and Leela hospitality chains remain with ITC.
ITC transferred cash and cash equivalents worth Rs15bn ($175m) to ITCHL to support planned growth and contingencies.
Furthermore, a trademark licence agreement will allow ITCHL to use ITC trademarks and brand names such as Bukhara, Dum Pukht, and Dakshin.
An operating service agreement will enable ITCHL to manage ITC Grand Central, Mumbai.
Identified assets, including offices and staff housing related to the hotels business, will be transferred to ITCHL.
