ITC Ltd on Tuesday announced that the company has fixed January 1, 2025 as the effective date for demerger of its hotel business after receiving an order from the National Company Law Tribunal (NCLT). In a regulatory filing, the company informed that it has received an order from NCLT sanctioning the agreement.
Earlier in October this year, the Kolkata bench of the NCLT had approved the demerger between ITC Limited and ITC Hotels Limited.
“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); copy of the said order was received by the Company on 16th December, 2024 at 5.26 p.m,” ITC said in the exchange filing.
“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. 1st January, 2025, in accordance with Clauses 5.1(iii) and 5.1(xvi) of the Scheme, respectively,” the company further added.
Shares of ITC rose 2.4 per cent to an intra-day high of Rs 473.95 from the day’s low as soon as the company reported the demerger.
Earlier in October, ITC reported its fiscal second quarter earnings with profit at Rs 4992.87 crore, up 1.9 per cent in comparison to Rs 4898.07 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 22,281.89 crore, up 15.6 per cent as against Rs 19,270.02 crore during the same period of previous financial year, driven by Agri Business and Hotels.
During the quarter, the Hotels segment had delivered strong performance on a high base with revenue growth of 12.1 per cent YoY, driven by F&B, Retail and Wedding segments. EBITDA margin expanded 70 bps YoY driven by higher RevPAR, operating leverage and strategic cost management. The F&B portfolio was augmented with the launch of 2 new outlets – ‘Ottimo’ at ITC Grand Goa and ‘Avartana’ at ITC Maurya.