Following an order from the National Company Law Tribunal (NCLT), ITC Ltd. announced on Tuesday that it has set January 1, 2025, as the effective date for the demerger of its hotel business. 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 approved by the NCLT's Kolkata bench earlier in October of this year.
ITC shares zoomed to a day high level of Rs 475.80 per share on the NSE (National Stock Exchange) after hitting the opening bell at Rs 470.00 per share on the Indian bourses, reacting to Comapny's announcement to demerge hotel business.
NCLT approves demerger
Further to our letter dated 5th October, 2024, we write to advise that the Company has received a certified copy of the Order dated 4 th October, 2024 issued by the Hon’ble National Company Law Tribunal, Kolkata Bench, sanctioning 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 (Scheme).
We further advise that ITC Limited and ITC Hotels Limited have mutually acknowledged that all the conditions specified in Clause 28 of the Scheme have been fulfilled and satisfied, including filing of the aforesaid Order with the Registrar of Companies, West Bengal, and accordingly, the Appointed Date and the Effective Date of the Scheme shall be the first day of the following month i.e. 1 st January, 2025, in accordance with Clauses 5.1(iii) and 5.1(xvi) of the Scheme, respectively.
ITC Q2 FY25
ITC announced its fiscal second quarter earnings earlier in October, showing a profit of Rs 4992.87 crore, up 1.9 per cent from Rs 4,898.07 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 per cent from Rs 19,270.02 crore in the same period of the previous fiscal year.
