After receiving an order from the National Company Law Tribunal (NCLT), ITC Ltd has fixed January 1, 2025 as the effective date for demerger of its hotel business.The company said it has received order from NCLT sanctioning the agreement.
(Photo: IANS)
After receiving an order from the National Company Law Tribunal (NCLT), ITC Ltd has fixed January 1, 2025 as the effective date for demerger of its hotel business.The company said it has received order from NCLT sanctioning the agreement.
“The Company has received a certified copy of the Order dated 4th October, 2024 issued by the Hon’ble National Company Law Tribunal, Kolkata Bench, sanctioning the Scheme of Arrangement amongst ITC Limited and ITC Hotels Limited and their respective shareholders and creditors under Sections 230 to 232 read with the other applicable provisions of the Companies Act, 2013 (Scheme); copy of the said order was received by the Company on 16th December, 2024 at 5.26 p.m,” the company said in an exchange filing.
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It was earlier this June the company shareholders approved demerger of the conglomerate’s hotel business. Around 99.6 per cent shareholders voted in favour of demerger, while just 0.4 per cent voted against it.
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Jefferies in a note earlier this month noted that other than the ITC Hotels listing via demerger, three hoteliers namely Schloss Bangalore (Leela), Ventive Hospitality and Brigade Hotels have already filed IPO prospectus in the past 3-4 months and looking to raise about Rs 8,000 crore, including fresh raise of Rs 6,000 crore.
It is to be highlgihted that during the recent quarter, ITC’s hotels segment achieved record high revenue and profits. It was supported by strong RevPar growth from retail, MICE, and marquee events. Segment revenue grew 15.6 per cent YoY to Rs 2,989 crore in Q4FY24 and EBITDA was up 26.2 per centYoY to Rs 1,049 crore.
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