ITC Hotels Limited will be separated from ITC Limited: Demerger will be effective from January 1, 2025, 99.6% shareholders voted in favor in June

The demerger of its hotel business from FMCG company ITC Limited, which manufactures daily use products from cigarettes to soap, has been finalized. It will become effective from January 1, 2025. The company has given this information in the exchange filing on Tuesday (December 17).

The Kolkata Bench of the National Company Law Tribunal (NCLT) approved this deal between ITC Limited, ITC Hotels Limited and their shareholders in October 2024. In June this year, the shareholders of ITC Limited voted on the decision of demerger. Then 99.6% of the shareholders voted in favor of the demerger, while only 0.4% voted against it.

ITC will hold 40% stake in the hotel after demerger                                                                                      

ITC will hold 40% stake in the hotel business after demerger. The remaining 60% stake will be with the shareholders. ITC announced the demerger plan in July last year and later said that the new unit would be listed in 15 months.

ITC Hotels will compete in the market as a separate unit

ITC Hotels will compete with competitors like Tata-owned Indian Hotels Company and EIH Associated Hotels as an independent unit. Indian Hotels operates Taj Hotels. At the same time, EIH manages the Oberoi brand of hotels.

ITC was established in 1910

ITC is a leading multi-business Indian enterprise with presence in FMCG, paper, packaging, agri-business, hotels and IT. Sanjeev Puri is the Chairman and Managing Director of ITC.

This company was established in 1910, then the name of this company was Imperial Tobacco Company. Then in 1970 its name was changed to India Tobacco Company. After this, in 1974 its name became ITC Limited.