ITC has set June 6 as the date to meet ordinary shareholders to approve the demerger scheme. This follows the National Company Law Tribunal (NCLT) order to convene a meeting of the ordinary shareholders.
In a stock market filing the FMCG major stated that”Further to our letter dated August 14 2023, we write to advise, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that as directed by the Hon’ble National Company Law Tribunal, Kolkata Bench, vide Order dated April 22, 2024 which was received by us today, a Meeting of the Ordinary Shareholders of the Company will be convened on Thursday, June 6, 2024 at 10.30 a.m. (IST) through electronic mode for the purpose of considering, and if thought fit, approving the proposed Scheme of Arrangement amongst ITC Limited and ITC Hotels Limited and their respective shareholders and creditors,” the company said in a press release on Wednesday.
In August last year, the ITC board approved the demerger of its hotel business with an indicative timeline of 15 months for the listing of ITC Hotels. ITC Hotels will operate as an independent hospitality-focused listed entity.
The rationale of the demerger, as per the company, is to “enable the crafting of the next horizon of growth and sustained value creation for shareholders through a sharper focus on the business anchored on a differentiated strategy aligned with industry-specific market dynamics.”