ITC Hotels Demerger Record Date Set for January 6, 2025

ITC Hotels Limited (ITCHL) and ITC Limited have jointly designated Monday, January 6, 2025, as the Record Date to determine eligible shareholders for receiving equity shares of ITCHL.

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In an exchange filing on December 18, the company stated, "We wish to inform you that ITC Limited and ITC Hotels Limited (ITCHL) have mutually agreed to fix Monday, January 6, 2025, as the Record Date. This is to identify the shareholders eligible for equity share allocation in ITCHL, as outlined in Clause 18 of the Scheme of Arrangement between ITC Limited and ITC Hotels Limited, under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013."

The conglomerate confirmed on December 17 that the demerger of ITC Hotels will officially come into effect on January 1, 2025, following the receipt of all necessary approvals. Earlier, in October 2024, the Kolkata bench of the National Company Law Tribunal (NCLT) approved the demerger arrangement.

In June 2024, shareholders had strongly supported the demerger, with 99.6% of public institutions and 98.4% of public non-institutions voting in favor.

Post-demerger, ITC Limited will retain a 40% stake in ITC Hotels Limited, while the remaining 60% will be distributed among ITC shareholders in proportion to their current holdings. Additionally, ITC Hotels will pay a nominal royalty fee to ITC for using its brand name. Under the demerger arrangement, ITC shareholders will receive one equity share of ITC Hotels for every 10 equity shares of ITC they hold.

Separately, in October 2024, ITC realigned its holdings in hospitality chains Oberoi (EIH Ltd) and Leela (HLV Ltd). As part of this move, ITC will acquire shares held by its wholly-owned subsidiary, Russell Credit Ltd. (RCL). Currently, ITC owns a 13.69% stake in EIH and 7.58% in HLV, while RCL holds an additional 2.44% and 0.53% in these companies, respectively. These RCL holdings will be transferred to ITC Limited.

On the stock market, ITC’s performance remained steady today, with an intra-day high of ₹473.95 and a low of ₹467.00. Over the past year, the stock has risen by 4%, but in 2024 year-to-date, the increase is only 2%. It has delivered negative returns in seven of the twelve months this year, including a 1.4% decline in December so far, following losses of 2.5% in November and 5.6% in October.