In a pivotal step toward transforming its hospitality portfolio, ITC Ltd. has bolstered its holdings in luxury hotel players EIH and HLV. The current plan was to demerge its hotel business, paving the way for ITC Hotels Ltd., a new entity managing over 140 luxury properties.
ITC has acquired an additional 2.44% stake in EIH, amounting to 1,52,32,129 equity shares, and a 0.53% stake in HLV, equal to 34,60,829 equity shares. Post-acquisition, ITC’s stakes stand at 16.13% in EIH and 8.11% in HLV. EIH, part of The Oberoi Group, and HLV, associated with The Leela Mumbai, are key players in the luxury hotel industry, making these stakes valuable assets for ITC’s hospitality ambitions.
The demerger of ITC’s hotel business, with a record date of January 6, 2025, will establish ITC Hotels Ltd. as an independent entity. This new company will oversee renowned brands such as ITC Hotels, Welcomhotel, and Fortune, managing over 140 luxury properties. This strategic restructuring was widely supported by the shareholders of ITC Ltd. in June 2024
As of December 19, 2024, 12:20 PM, the shares of ITC are trading at ₹468.25 per share with a decline of 0.48% from its previous day’s closing price. Over the last month, the stock has been flat and has seen an upside of 0.2%. While over the year the stock has surged by 3.36% the stock has a 52-week high and 52-week low of ₹528.50 per share and ₹399.35 per share respectively.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 19, 2024, 3:40 PM IST
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