ITC hotels could take up to 15 months to get listed: Puri

economictimes.indiatimes.com:

ITC chief Sanjiv Puri said listing of the proposed demerged hotel entity, ITC Hotels, will take 12-15 months to complete the regulatory process, while the shareholding structure of the company will provide stability to the hotels business and allow ITC to leverage the institutional strengths to build its fast-moving consumer goods (FMCG) business. Addressing shareholders in the company’s 112th annual general meeting held virtually on Friday, chairman amd MD Puri said the listing of ITC Hotels would take 15 months or more or less, since there are multiple steps in the regulatory process.

“The continued interest of ITC in the new entity (ITC Hotels) will provide long-term stability and instill a sense of assurance among partners, investors and employees, while enabling the new entity to leverage ITC’s institutional strengths including the timeless goodwill, world-class brands and governance processes,” Puri said. The comments come at a time when the shareholding structure from the demerger process of ITC Hotels has been criticized by a section of shareholders and analysts.

Last month, ITC announced its board has approved in-principle the demerger of the hotels business where ITC retains 40% stake and 60% will be owned directly by the company’s shareholders proportionate to their shareholding in ITC. Puri said there is no change in economic interest of ITC shareholders in the new arrangement since they will hold 60% directly and 40% indirectly through their holding in ITC.

“How many shares they will hold is just a mathematical exercise. Shareholders will ultimately have the same value,” he said.