ITC Hotels Demerger ITC Demerger ITC Shareholders Meet On 6 June 2024 To Approve Scheme

ITC Hotels Demerger Update: The date for which the shareholders of cigarettes and FMCG company ITC were waiting has been revealed. A meeting of the shareholders of the company has been called on June 6, 2024 to get approval on the demerger plan of ITC Hotels from ITC Limited. In this meeting, ITC Hotels will be separated and listed on the stock exchange.

ITC has given this information to the stock exchanges in its regulatory filing. ITC said that this meeting will be held in electronic mode on June 6, 2024 at 10.30 am. The National Company Law Tribunal has ordered to call a meeting of the general shareholders of the company, after which the decision to call this meeting has been taken. Earlier last year, on August 14, 2023, a meeting of the company's board was held in which the scheme of arrangement was approved in which it was decided that ITC Hotels, a company related to the hotels business, would be given to each shareholder of ITC in exchange for 10 shares in the parent company. One share will be given.

After completion of the demerger process, ITC Hotels will be listed on the stock exchange after getting approval from shareholders, creditors, stock exchanges, SEBI, NCLT and other regulatory authorities. According to the approval given for the demerger of the hotel business, 40 percent stake in the hotel business company will remain with the parent company. The remaining 60 percent stake will be held by ITC shareholders. One rupee will be the face value of the company's share.

While giving information about the decision of demerger, ITC had said that the company's board believes that the hotel business is fully prepared to grow as a separate entity in the rapidly growing hospitality industry. The company said that the focus of the new hotel unit will be on capital formation along with business. Besides, it will continue to benefit from ITC's institutional strength, brand equity and goodwill. ITC has 120 hotels with 11,600 rooms at 70 locations across the country.

After the market closes on Wednesday, the date of the shareholders' meeting to get approval on the demerger has been announced. Earlier today, at the close of the stock market, ITC stock closed at Rs 428.90 with a fall of 0.07 percent. In the last three months, ITC shares have given negative returns of -7.5 percent to investors.

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