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ITC Hotels: ITC Limited, a big company in the FMCG sector, will demerge i.e. separate from its hotel business, ITC Hotels Limited (ITCHL). The group’s objective behind doing this is to develop the hotel business as a separate unit. Let us tell you, before the demerger, Rs 1,500 crore cash and cash equivalent will be given to ITCHL by ITC.
This cash equivalent includes low-risk investments ranging from bank deposits to savings accounts, commercial paper, money market funds and short-term government bonds, which can be converted into cash within a time frame of 90 days. The company had announced this in an investor presentation given in the stock market last Monday. The company says that this amount will be transferred for the development of the hotel sector and to meet the sudden financial requirements in this work.
Demerger will be effective from January 1, 2025
ITC Hotels Limited will be separated from ITC Limited with effect from January 1, 2025. The company has set the record date for distribution of shares as January 6, 2025. If you want to benefit from this demerger, then you will have to buy shares of the company by January 3, 2025. Those whose names will be included in the list of shareholders on January 6 will get one share of ITC Hotels for every 10 shares of ITC.
The distribution of shares will be in such a way that the parent company i.e. ITC Limited will have 40 percent stake in ITC Hotels, while the remaining portion will be allotted to the shareholders. After the demerger, ITC Hotels will operate as a separate entity, which will also provide an opportunity to investors to get higher returns. This is also a big opportunity for those who want to invest in hotel business. It is noteworthy that at present the market cap of ITC is Rs 5,99,185.81 crore. Shares of the company closed at Rs 478.90 on BSE on Friday.
Disclaimer: (The information provided here is being provided for information only. It is important to note here that investment in the market is subject to market risks. Always seek expert advice before investing money as an investor. ABPLive.com does not advise anyone It is never advisable to invest money here.)
