ITC is demerging its hotel business

After years of speculation, ITC has finally decided to demerge its Hotels business, with the company holding 40% stake in the new entity, while the balance 60% will be held by the company’s shareholders proportionately.

Feels like a different way to setup this, But, this is the best way to ensure that current management doesn’t lose out the control of the entity as there can always be a chance of hostile takeover especially if BAT (the British American tobacco company) exits the hotels business.

Some interesting data on ITC Hotels -

  • 120 hotels, 11,600 keys across 70+ locations

FY23 Hotels Segment

  • Revenue for the year doubled to Rs 2585 Cr
  • Segment EBITDA at Rs 831.62 crores, as against ` 78.03 crores in FY22
  • Segment PBIT for the year stood at Rs 542 Cr v/s loss the previous year. 724.99 crores jump over FY22

Source : Aditya kondawar


How many shares of ITC hotels will the investors in each share of ITC get? And, what would be the listing price?

Details are not yet announced. Company has conveyed that board is going to take up this proposal on August 14th.