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ITC shareholders have overwhelmingly approved the demerger of the company's hotel business, ITC Hotels, with a 99.6% majority.
This paves the way for the listing of ITC Hotels, which is expected to occur soon this year.
The demerger involves the distribution of 1 share in the demerged hotels business for every 10 shares held in ITC, and ITC will continue to hold a 40% stake in ITC Hotels post-demerger.
The remaining 60% will be held by ITC's shareholders.
The demerger is intended to allow ITC Hotels to raise capital for growth and attract new investors.
ITC Hotels will be granted a license to use the 'ITC' prefix in its corporate name and branding.
This move is seen as a strategic step for ITC, allowing its hotel business to operate as a separate listed entity and capitalize on the growing hospitality industry.
The Competition Commission of India (CCI) has already approved the demerger, and the process is expected to be completed after obtaining the necessary regulatory approvals.
Source: ITC shareholders approve demerger of ITC Hotels with 99.6% majority