ITC’s Share Price in Focus; Allots 125.11 Crore Shares of ITC Hotels to Shareholders

ITC Hotels allocates 125.11 crore shares to its shareholders, following the Scheme of Arrangement. ITCHL ceases to be a subsidiary of ITC Limited, effective January 11, 2025. Listing applications to follow, the company said in a press release on the stock exchange.

ITC Hotels Allots Shares, Exits Subsidiary

The Board of Directors of ITCHL, at the meeting held on January 11, 2025, allotted around 125.11 crore equity shares of ₹1 each to the shareholders of the company as of the record date, January 6, 2025.

This allotment is pursuant to the Scheme of Arrangement between ITC Limited, ITCHL, and their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013. As a result of this allotment, ITCHL has ceased to be a subsidiary of ITC Limited, effective January 11, 2025.

Additionally, ITCHL will make the necessary application for the listing of its equity shares, and these shares will remain frozen until the listing or trading permission is granted by the Stock Exchanges.

As part of the demerger deal, ITC will retain 40% of the hotel’s shareholding, and the remaining 60% will be equally distributed among existing ITC shareholders.

ITC Q2 Financial Performance

ITC Ltd. reported strong financial performance for Q2 FY25, with a net profit of ₹5,078.34 crore, reflecting a 3% year-on-year (YoY) increase. The company’s revenue stood at ₹20,359.95 crore, marking a 16% YoY growth. EBITDA for the quarter was ₹6,335.2 crore, showing a 4.9% increase, while the margin reached 32.8%.

Share Price Performance

ITC’s share price traded 2.23% lower at ₹435 on the NSE at 9:30 AM, marking a second consecutive session of decline. The stock opened at ₹435, down from its previous close of ₹444.90, after registering a 1.16% drop in the previous trading session.

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