Following a decision from the National Company Law Tribunal (NCLT), ITC Ltd. stated on Tuesday that it has set January 1, 2025, as the effective date for the demerger of its hotel sector. The business disclosed in a regulatory filing that NCLT had issued an order approving the deal.
The demerger between ITC Limited and ITC Hotels Limited was allowed by the NCLT’s Kolkata bench earlier in October of this year. As soon as ITC announced the demerger, its shares jumped 2.4% from the day’s low to an intra-day high of Rs 473.95.
The Hon’ble National Company Law Tribunal, Kolkata Bench, issued an order on October 4, 2024, sanctioning the Scheme of Arrangement between 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 (Scheme).” In response to our letter dated October 5, 2024, we write to advise that the Company has received a certified copy of the said order on December 16, 2024, at 5:26 p.m.,” ITC stated in the exchange filing.
ITC announced its fiscal second quarter profits earlier in October, showing a profit of Rs 4992.87 crore, up 1.9% from Rs 4898.07 crore in the same quarter of FY24. Driven by Agri-Business and Hotels, it reported operating revenue of Rs 22,281.89 crore, up 15.6% from Rs 19,270.02 crore in the previous fiscal year.
With revenue growth of 12.1% YoY, the Hotels segment performed well on a high base during the quarter, propelled by the F&B, Retail, and Wedding divisions. Due to improved RevPAR, operating leverage, and proactive cost control, the EBITDA margin increased by 70 basis points yearly.
