ITC Shareholders Give Thumbs Up to Hotels Demerger

Big Win for ITC Shareholders: 99.6% Approval for Hotel Business Split

The shareholders of ITC Ltd. have approved the demerger of its hotel business with an overwhelming majority of 99.6%, as per an exchange filing on Thursday. The statement confirmed that the resolution to approve the demerger scheme among ITC, ITC Hotels Ltd., and their respective shareholders and creditors has been passed with the required majority.

Various investors, including the government, participated and voted to favour the demerger. In August 2023, the company announced its plans to demerge its hotel business into a separate entity. Under this demerger scheme, ITC will retain 40% ownership of ITC Hotels, while ITC shareholders will acquire the remaining 60% in proportion to their stake in the parent entity.

The voting occurred after Institutional Investor Advisory Services (IiAS), a domestic proxy advisory firm, opposed the demerger move. IiAS advised the firm’s shareholders to vote against the proposed demerger, stating that it only partially unlocks value.

Following the announcement, ITC’s shares recovered from the day’s low and ended 1.4% higher at Rs 436.40, outpacing the 0.9% gains in the country’s benchmark NSE Nifty 50.