Itc demerger: On August 14

On August 14, 2023, ITC ’s board approved the scheme of arrangement between ITC and ITC Hotels Ltd. for the demerger in a swap ratio of 1:10 for shareholders, which is likely to be completed over the next 15 months. As part of the scheme, for every 10 shares held in ITC , the shareholder shall be entitled to receive 1 share of ITC Hotels. The long-awaited demerger of Kolkata-based diversified conglomerate ITC ’s hotel business will come into effect today. The tobacco-to-hotel conglomerate has fixed January 6 as the record date for the spin off of its hotels business. ITC Limited, one of India's leading conglomerates, has embarked on a strategic demerger of its hotel business. This move is expected to facilitate a significant value for shareholders, offering a clearer focus on the hospitality sector ITC Hotels Demerger : In August 2023, FMCG behemoth ITC revealed intentions to spin off its hotel division into a separate company. Under the proposal, ITC will maintain 40% ownership of ITC Hotels, with the remaining 60% given to ITC shareholders based on their holdings.