ITC Hotel Shares Listing Date Yet To Be Announced: ITC Allotted 125.11 Crore Shares

ITC Ltd has allotted 125.11 crore equity shares of ITC Hotels to its shareholders. The decision was made during a Board meeting held on January 11, 2025, following a scheme of arrangement between ITC Ltd. and ITC Hotels (ITCHL).

In an exchange filing, ITC stated that the Board of Directors of ITCHL, during the meeting on January 11, 2025, allotted 125,11,71,040 equity shares of Rs 1 each to the shareholders of the company as of the record date, January 6, 2025. This action was taken under the Scheme of Arrangement between ITC Ltd., ITCHL, and their respective shareholders and creditors.

With this development, ITC Hotels ceased to be a subsidiary of ITC Ltd., effective January 11, 2025.

Shareholding Distribution and De-merger Plans

As per the demerger deal, ITC Ltd. will retain 40% of the hotel shareholding, while the remaining 60% will be distributed equally among existing ITC shareholders. The listing date of these shares is yet to be announced as regulatory approvals are still pending. However, market expectations suggest that the stock could be listed on stock exchanges by mid-February 2025.

ITC Demerger Objective

ITC demerger would enable its hotel business to attract investors and strategic partners whose investment strategies align more closely with the hospitality sector. Additionally, it aims to unlock value for shareholders by providing them with a direct stake in the newly formed entity, which will be independently valued by the market.

This move also reflects ITC’s capital allocation strategy, which has evolved in recent years. The strategy, focused on an ‘asset-right’ approach in the hotel business, is expected to reinforce the company’s focus on strategic growth and market-driven operations.

The demerger positions ITC Hotels to become the second-largest hotel chain in India, with a portfolio of 140 hotels across major cities and tourist destinations.

About ITC Hotels Limited

ITC Hotels operates a portfolio of luxury properties across major cities and tourist destinations. Notable brands in its portfolio include ITC Grand Bharat and WelcomHotel, both recognized for their premium offerings in the hospitality industry.

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