ITC Hotels Limited (ITCHL) and ITC Limited have jointly decided to designate Monday, January 6, 2025, as the Record Date. This date will determine the shareholders eligible to receive equity shares of ITCHL.
“We write to advise that the Company and ITC Hotels Limited (ITCHL) have mutually agreed to fix Monday, 6 th January, 2025 as the Record Date for the purposes of determining the shareholders of the Company to whom equity shares of ITCHL would be allotted in accordance with Clause 18 of the Scheme of Arrangement amongst ITC Limited and ITC Hotels Limited and their respective shareholders and creditors under Sections 230 to 232 read with the other applicable provisions of the Companies Act, 2013,” the company said in an exchange filing today, December 18.
The conglomerate announced on Tuesday, December 17, that the demerger of ITC Hotels will officially take effect from January 1, 2025, as all required approvals are now in place. Earlier in October 2024, the Kolkata bench of the National Company Law Tribunal (NCLT) granted its approval for the demerger between ITC Limited and ITC Hotels Limited.
Shareholders had overwhelmingly approved ITC’s hotels business demerger in June 2024, with 99.6 percent of public institutions and 98.4 percent of public non-institutions voting in favor of the proposal.
Following the demerger, ITC Limited will retain a 40 percent stake in ITC Hotels Limited, while the remaining 60 percent will be directly held by ITC shareholders in proportion to their existing shareholding. Additionally, ITC Hotels will pay a nominal royalty fee to ITC for the continued usage of its brand name.
Under the ITC demerger ratio, shareholders of ITC will receive one equity share of ITC Hotels for every 10 equity shares of ITC they hold.
Separately, in October 2024, ITC consolidated its holdings in hospitality chains Oberoi (EIH Ltd) and Leela (HLV Ltd). As part of this realignment, ITC will acquire shares currently held by its wholly-owned subsidiary, Russell Credit Ltd. (RCL).
Currently, ITC holds a 13.69 percent stake in EIH and a 7.58 percent stake in HLV. Meanwhile, Russell Credit Ltd. owns an additional 2.44 percent and 0.53 percent in EIH and HLV, respectively, which will now be transferred to ITC Limited.
Stock Price Trend
The stock has been flat in today’s deals with an intra-day high of ₹473.95 and low of ₹467.00. The stock has risen 4 percent in the last 1 year and just around 2 percent in 2024 YTD. It has given negative returns in 7 of the 12 months of 2024. The scrip lost 1.4 percent in December so far, extending losses for the 3rd straight month after 2.5 percent in November and 5.6 percent in October.
