Rs 1,500 cr to be transferred to ITC for growth & contingency requirements

New Delhi: Demerger of ITC’s Hotel Business would come into effect from January 1, 2025, and the record date for shareholders will be January 6, 2025.

As per the scheme, ITC Hotel will be separated from the parent entity, according to a regulatory filing from the Kolkata-based conglomerate.

As per the demerger scheme, ITC shareholders whose names will appear in the list of shareholders on January 6 will receive “one share of ITC Hotels for every 10 shares of ITC”.

ITC Hotels will issue equity shares directly to the shareholders of ITC in a manner that about 60 per cent stake is held directly by ITC shareholders proportionate to their shareholding in ITC and the remaining about 40 per cent stake will continue with ITC.

“Overall, existing ITC shareholders will hold 100 per cent of ITC Hotels, i.e. about 60 per cent directly and a balance of about 40 per cent through their shareholding in ITC,” it said.

Moreover, ITC will transfer “cash & cash equivalents of Rs 1500 crore” to the demerged entity “to cater to planned growth & contingency requirements,” said ITC in an investor presentation shared on Monday to bourses.