Rs 1,500 crore to be transferred to ITC for growth & contingency requirements
Demerger of ITC’s Hotel Business would come into effect from January 1, 2025, and the record date for shareholders will be January 6, 2025. As per the scheme, ITC Hotel will be separated from the parent entity, according to a regulatory filing from the Kolkata-based conglomerate.
As per the demerger scheme, ITC shareholders whose names will appear in the list of shareholders on January 6 will receive “one share of ITC Hotels for every 10 shares of ITC”.
ITC Hotels will issue equity shares directly to the shareholders of ITC in a manner that about 60 per cent stake is held directly by ITC shareholders proportionate to their shareholding in ITC and the remaining about 40 per cent stake will continue with ITC.
ITC Hotels will file application with stock exchanges for listing its shares and post allotment will be listed by Feb. 14 as per regulatory requirement. ITC will hold nearly 40% stake in the hotel arm and the remaining will be held by ITC shareholders. It is likely the listing will be well ahead of the deadline as ITC is part of the index and ITC Hotels will continue to be dormant stock in the in market.
Investments All investments in hospitality entities forming part of hotels business, will be transferred to ITC Hotels. This list includes Bay Islands Hotels Ltd., Fortune Park Hotels Ltd., Landbase India Ltd., Srinivasa Resorts Ltd., WelcomHotels Lanka Pvt. Ltd., Gujarat Hotels Ltd., International Travel House Ltd., and Maharaja Heritage Resorts Ltd.
ITC Hotels will have zero debt balance sheet and cash generating operations, the company said. The company will invest 8–10% of its revenue in capital investments every year.
