Itc demerger: On August 14

On August 14, 2023, ITC ’s board approved the scheme of arrangement between ITC and ITC Hotels Ltd. for the demerger in a swap ratio of 1:10 for shareholders, which is likely to be completed over the next 15 months. As part of the scheme, for every 10 shares held in ITC , the shareholder shall be entitled to receive 1 share of ITC Hotels. Last year, ITC decided to demerge its Hotel business into a separate listed entity to unlock value for shareholders. It fixed the demerger ratio at 1:10, which meant that shareholders holding... ITC Limited’s decision to demerge its hotel business, ITC Hotels, marks a pivotal moment in the conglomerate’s strategy to streamline operations and enhance shareholder value. The demerger ... With the demerger , ITC Hotels will become the second largest hotel chain with its revenue standing at ₹3,103 Crores. It is noteworthy how the Hospitality sector in India is booming, as demand is growing by 9%, while supply is at 6%. The remaining gap of 3% is what is boosting the industry’s growth.