Deal Done! ITC Hotels Demerger From ITC Now Complete - Company Shares Update

In a significant step towards corporate restructuring, ITC Hotels Limited (ITCHL) has completed its demerger from ITC Limited. The Board of Directors of ITCHL, in a meeting held on January 11, 2025, approved the allotment of 125,11,71,040 equity shares of RS 1 each to ITC shareholders, in accordance with the record date of January 6, 2025.

The allotment is part of the Scheme of Arrangement under Sections 230-232 of the Companies Act, 2013. ITC confirmed this development in its exchange filings, stating, "The Board of Directors of ITCHL at the meeting held today... has allotted equity shares to the shareholders of the Company as on the Record Date i.e., 6th January 2025, pursuant to the Scheme of Arrangement amongst ITC Limited and ITCHL and their respective shareholders and creditors."

ITC-ITC Hotels Demerger
Under the demerger plan announced in August 2023, ITC Limited retains 40% ownership of ITC Hotels, while the remaining 60% is allocated to ITC shareholders, in a 1:10 share ratio (one ITC Hotels share for every 10 ITC shares held).

With the allotment complete, ITCHL ceases to be a subsidiary of ITC Limited from January 11, 2025, paving the way for ITC Hotels to operate as a standalone entity in the premium hospitality segment.

‘Consequent to the above, ITCHL has ceased to be a subsidiary of the Company effective 11th January, 2025,’ as mentioned in the exchange filing on BSE. 

Listing Details of ITC Hotels
ITCHL shares will remain frozen until the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) grant listing and trading permissions.

According to ITC, the shares are expected to be listed by mid-February 2025, within 60 days of the NCLT ruling received on December 16, 2024.