Edition 21 – ITC – De(merger) of hotels business

In its exchange filing, ITC Ltd. announced that the board has accorded in-principle approval for the demerger of its hotel’s business. Under the proposed scheme, the company would hold stake of ~40% while the balance would be held by the company’s shareholders proportionate to their shareholding in the company (refer exhibit 1). The demerged entity will be a wholly owned subsidiary, “ITC Hotels Limited” or any other name as may be approved by the relevant authorities.