Business

11 months ago

ITC Board Gives In-Principle Nod for Demerger of Hotels Business

(File Picture)ITC Board Gives In-Principle Nod for Demerger of Hotels Business
(File Picture)ITC Board Gives In-Principle Nod for Demerger of Hotels Business

 

New Delhi, July 24, 2023 : The board of directors of ITC Ltd. has given in-principle approval for the demerger of its hotels business into a wholly owned subsidiary called ITC Hotels Ltd. The demerger is expected to be completed by the end of the current financial year.
ITC Hotels currently has a portfolio of over 120 hotels and 11,600 keys across India, Sri Lanka, and the Middle East. The company's hotels are operated under the brands ITC Hotels, WelcomHotels, Fortune Hotels, and Ginger Hotels. The demerger is part of ITC's strategy to focus on its core businesses of cigarettes, hotels, and consumer goods. The company believes that the demerger will allow ITC Hotels to operate more independently and focus on its growth plans. ITC Hotels is expected to be listed on the stock exchanges after the demerger. The company has said that it will use the proceeds from the listing to fund its expansion plans.The demerger is a positive development for ITC Hotels. It will allow the company to operate more independently and focus on its growth plans. The listing of ITC Hotels on the stock exchanges will also provide the company with access to capital, which it can use to fund its expansion plans.

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