ITC could receive approval from shareholders for the demerger of its hotels business on June 6.

ITC also reported on May 23 that, following approval from stock exchanges, the National Company Law Tribunal (NCLT) has given authorization to the company to convene a shareholder meeting on June 6, 2024, to review and approve the proposed demerger of its hotel business.

On August 14, ITC's board authorized the separation of its hotel operations and the creation of a new company to be publicly traded. Nevertheless, the hotels will still maintain their ITC licenses and operate using the same brand name.

The board has announced that it has reviewed and authorized the separation of the hotel business through an arrangement between ITC and ITC Hotels, along with their shareholders and creditors, under Sections 230-232 and other relevant laws of the Companies Act, 2013.

In the demerger, shareholders of ITC will receive one share in the hotel company for every 10 shares they own in ITC. ITC shareholders will have approximately 60 percent ownership in ITC Hotels directly (based on their ITC holdings), while the remaining 40 percent stake will remain with ITC. No payment is required for the demerger procedure.