afaqs! news bureau

ITC to demerge its hotels business

The FMCG giant’s board approved the demerger on Monday, the company revealed in a stock exchange filing.

FMCG giant ITC’s board approved on monday the demerger of its hotels business. The company revealed the development in a stock exchange filing.

As per the release, ITC’s hotels business has shown strong growth in FY 2022-23, and is expected to continue the expansion. After the demerger, the company will hold around 40% of the total stake, while the rest will be held by shareholders.

ITC’s hotel count stands above 120 in over 70 locations. Post covid, the Indian hospitality industry has grown noticeably, with improved statistics on room rate and occupancy, the release highlights.

After the announcement, the company stock fell sharply by as much as Rs 15.5 to Rs 474.4 apiece on BSE. The company’s recent annual report for FY 2022-23 exhibited favourable financial results. The company garnered gross revenue of Rs 69,480.89 crores, a growth of 17.6 per cent compared to last year.

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