Business News: ITC Plans to Build a Separate Entity For its Hotel Business to Increase Growth Prospects

Business News: ITC has taken a significant decision to separate its hotel operations and form a new organization called ITC Hotels Ltd. This transaction will establish ITC Hotels as an independent, publicly traded company, allowing it to pursue its own growth goals. The demerger aims to allow ITC to focus on its core industries, which include FMCG, paperboard, and agriculture, while giving the hotel division the freedom to expand and increase its footprint in the premium and luxury hospitality segments. 

Effect on Market and Investors

For investors, the demerger has considerable advantages. Existing ITC stockholders will receive shares in ITC Hotels Ltd., revealing the full value of the hotel industry through an independent listing and generating unique growth potential for both companies. Experts believe that ITC’s core company will gain stability and focus, while the hotel business will capitalize on its potential for long-term growth. With over 120 properties under its portfolio, ITC Hotels is poised for strategic growth in this space.