ITC to seek shareholder approval on June 6 for hotels biz demerger
ITC on Thursday said the National Company Law Tribunal (NCLT) has directed convening a meeting of shareholders of the company on June 6 for approval of the demerger of its hotels business into a separate listed entity.
«Post obtaining no-objection from stock exchanges, Scheme of Arrangement for demerger was filed with National Company Law Tribunal (NCLT). NCLT has directed convening a meeting of shareholders of ITC on June 6, 2024, to consider and approve the Scheme,» ITC said in a regulatory filing.
Under the demerger plan, shareholders of ITC will get one share in the demerged hotels business for every 10 shares held in the parent company. The demerger process is expected to be completed in this calendar year after which ITC Hotels will get listed on stock exchanges.
Also read | ITC Q4 Results: Profit falls marginally to Rs 5,120 crore, misses estimates
In the March quarter, the hotel business saw its revenue going up by 15% to Rs 898 crore and PBIT (profit before interest and tax) by 34% YoY to Rs 267 crore on a high base. The EBITDA margin improved 340 bps YoY to 38.2% and was driven by higher RevPars, structural cost interventions, and operating leverage.
As part of the demerger plan, which will not only unlock value for its 36 lakh shareholders but also improve the capital allocation of the parent company, ITC will own 40% of ITC Hotels. The remaining 60% will be owned by ITC shareholders in proportion to their ownership in the parent entity.
Following the scheme of arrangement, there would be no change
